STION TWO ratios. (6 marks) (Total: 20 marks) Among the most familiar and widely used valuation tools in equity valuation are price multiples, Justify why price multiples are used in equity valuation An analyst (2 marks) Zawadi Designers Limited's shares are selling for Sh.25 per share. Earnings for the last 12 months were Sh.I 32 times per share. The average trailing price earnings (P/E) ratio for firms in Zawadi Designers Limited's industry is Required: Using the method of comparables, determine whether Zawadi Designers Limited's share is overvalued or undervalued undervalued (2 marks) Highlight two advantages of using the price-to cash flow (P/CF) ratio as an equity valuation tool. less object to paniputttion, more stable than mmings, addrocase isves a duzfenced in god (2 marks) The following data was gathered by Ezekiel Rono, an equity analyst who researches for Redline Company adopted by di Dividend payout ratio Return on equity ( ROE) 185% Justified Pls= (go