Use the following information to answer questions 19 and 21.

Ayanda Ltd has a return on equity (ROE) of 25% and an equity

risk premium of 5.8%. Its shares are currently trading at R41.50. The company

reported trailing 12-month earnings per share of R1.50 and paid dividends of

R0.90 per share.  The market-based

multiples are a price-to-earnings (P/E) of 29.4, a price-to-book (P/B) ratio

of 8.2, and a price-to-sales (P/S) of 2.7. 

The profit margin on sales of 10.5%. The current treasury bond rate of

4.5%, and Ayanda Ltd’s beta is 1.2.

Calculate

the justified values of P/E, based on the trailing earnings.