[25] QUESTION TWO 2.1 A firm projects an ROE of 18%; it will maintain a payout ratio of 40%. The firm is expecting earnings of R3 per share and investors expect a return of 15% on the investment. Calculate the expected share price and the P/E ratio of the firm. 2.2 Discuss five (5) types of preference shares. 2.3 List the disadvantages of using the PE ratio