please assist urgently

a) Your managing director has just attended a meeting with an investment 10%. The data used by the investment analyst in her calculation is as shown below analyst who has suggested that your company's shares are over valued by Number of Shares Total earnings Yest Total dividends 2010 2011 2012 5,680 6,134 8,108 10,007 18,260 28,600,000 21320 35,0000021,320 40,000,00028,620 Your company's current share price is Sh. 645 and the cost of equity is estimated tobe 12.5% k2 Reguired: Prepare a brief report for the managing director discussing whether or not your company's shares are likely to be overvalued. Relevant calculations should form part of your report [11 marks) b) X Ltd wishes to buy Sh 1 million of shares in each of the two companies from a choice of three companies that it might wish to acquire at some future date. The companies are in different industries. Hlistoric ive year data on the risk and returns of the three companies are shown below Average annual Standard deviaton of Manji Foods 11% 20% 14% Talk Communications 29% 21% /* Logo printers Correlation coefficient between returns Manji and Talk Talk and Logo Manji and Logo 0.00 040 0.62 An adviser of X Ltd has suggested that the decision about which shares to buy should be based upon selecting the most efficient portfolio of two shares