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Note: Please show all working out and all steps, including the formuals used (e. g. price earnings ration, earnings per share etc). Jim wants to purchase shares in the company he works in. The company is listed on ASX and has a current share price of $3.50. Earnings in 2022 were $0.35 per share and in 2021 were $0.30 per share. The average PE for similar companies is 11.5 (based upon projected earnings for 2023). Question 1: Review this potential investment by Richards and prepare a recommendation based on your calculations.

Note: Please show all working out and all steps, including the formuals used (e. g. price earnings ration, earnings per share etc). Jim wants to purchase shares in the company he works in. The company is listed on ASX and has a current share price of $3.50. Earnings in 2022 were $0.35 per share and in 2021 were $0.30 per share. The average PE for similar companies is 11.5 (based upon projected earnings for 2023). Question 1: Review this potential investment by Richards and prepare a recommendation based on your calculations.

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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Note: Please show all working out and all steps, including the formuals used (e. g. price earnings ration, earnings per share etc). Jim wants to purchase shares in the company he works in. The company is listed on ASX and has a current share price of $3.50. Earnings in 2022 were $0.35 per share and in 2021 were $0.30 per share. The average PE for similar companies is 11.5 (based upon projected earnings for 2023). Question 1: Review this potential investment by Richards and prepare a recommendation based on your calculations.
Transcribed Image Text:Note: Please show all working out and all steps, including the formuals used (e. g. price earnings ration, earnings per share etc). Jim wants to purchase shares in the company he works in. The company is listed on ASX and has a current share price of $3.50. Earnings in 2022 were $0.35 per share and in 2021 were $0.30 per share. The average PE for similar companies is 11.5 (based upon projected earnings for 2023). Question 1: Review this potential investment by Richards and prepare a recommendation based on your calculations.
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