Q4 December 2014

Hi John, Please clarify whether such a comment would gain a couple of marks: Estimation of MV of shares based on the Market PE ratios: 2012: (9,2*463)/(750/0,25)= 1,42 correspondingly 2013: 1.95 & 2014: 3.17 At that, market values of shares per Q: 2012-1.69; 2013-2.01; 2014-2.69; Thus, the shares were appreciated by investors in 2012&2013 due to high PE ratios, though in 2014 market price was below the value estimated by the market average PE which indicates loss of interest of investors. Or perhaps, it'd be better like the examiner did - just to compare the PEs without calculation of share prices based on market average PEs. Perhaps, calculation of market values based on market average PEs and earnings are more relevant for questions involved in acquisitions (i.e. to assess whether the shares are overvalues or not). Thank you in advance.