1. p/e ratio = 30

expected market value per share = 5.1

2. p/e ratio = 40

expected market value per share = 6.8

- Actual merket price = 7.8

Compare the actual market price with the expected market value per share and tell the shareprice is over/underpriced for each of the assumption.

Requirement :

Able to do simple analysisto compare the marketprice based on the P/E ratio assumptions and the actual market price.