2.Alpha Ltd's its average current P/E ratio (as at 2018) is 14.4. The following table shows its P/E ratio for the previous 5 years. What is P/E for the period 2013 - 2017, and how would you describe the company's shares?

Year 2013. 17.0 2014 16.7 2015. 14.2 2016. 17.2 2017 14.9

year 2013	17.0
year 2014	16.7
year 2015	14.2
year 2016	17.2
year 2017	14.9

a. The historical average P/E is 16.70, and based on historical P/Es the share appears to be underpriced.

b. The historical average P/E is 16.70, and based on historical P/Es the share appears to be overpriced.

c. The historical average P/E is 16.00, and based on historical P/Es the share appears to be underpriced.

d. The historical average P/E is 16.00, and based on historical P/Es the share appears to be overpriced.

3. Smith Ltd has an enterprise value of $610,000 and EBITDA for the last nancial year of $113,000. The table below shows its 5 main competitors along with their EV/EBITDA ratios. What is the median EV/EBITDA ratio for these companies, and based on that value, would you say that Smith Ltd is underpriced or overpriced?

Company EV/EBITDA

Jones Ltd	6.83
Martin Ltd	5.66
Christie Ltd	8
Baghdadi Ltd	7.48
Duncan Ltd	6.18

a. The median EV/EBITDA ratio for the peer group is 6.18 and Smith Ltd appears to be overpriced.

b. The median EV/EBITDA ratio for the peer group is 6.83 and Smith Ltd appears to be underpriced. c. The median EV/EBITDA ratio for the peer group is 6.18 and Smith Ltd appears to be underpriced. d. The median EV/EBITDA ratio for the peer group is 6.83 and Smith Ltd appears to be overpriced.