30 June	Earnings per share (pence)	Price per share (pence)
2022	7.14	100
2021	7.31	95
2020	7.20	90
2019	5.93	80
2018	5.83	70
2017	5.45	60
2016	5.50	55

You are tasked to conduct share valuation on Joaxe plc, a company listed on the London Stock Exchange. Assume today is 30 June 2022. Joaxe plc trading history The average annual growth in Joaxe plcs earnings will apply for the next financial year. Required: a. Compute the value of a share in Joaxe plc using the price-earnings ratio (PER) approach, based on the historical average PER. Use 2 decimal places for the PER. (25 marks) b. Explain clearly THREE limitations of using balance sheets to estimate the value of a firm, and explain clearly THREE circumstances where net asset values may be important for firm valuation. Wordcount limit for part b is 180 words. The +10% tolerance does not apply. Provide the wordcount at the beginning of your answer to part b. (25 marks)