Hi all - (3) what is the current industry average price-earnings ratio(PER)? ALSO using richards estimations in part (2) below, calculate max securitys price earnings ratio? Comment on four differences in PER and explain why these differences may exist. Below is what was calculated for (1)and(2). Please show workings. Thank you in advance! Please calculate the 2 PERs of the industry and max security and comment on 4 differences and why they may exist

	Max Security	Industry
Total No of shares held by both Peter and Sandy	500,000
EPS	0.35	0.24
Total earnings- No of shares*EPS	175,000
Dividend distributed( 52500*2)	105,000	0.18
Retained earnings	70,000
Retained earnings %age= Retained earning/Earnings	=70000/175000	=0.06/0.24
Retention ratio	40.00%	25.0%
Return on equity	18%	10.50%
Growth rate= Return on equity*retention ratio	=40%*18%	=25%*10.50%
	7.200%	2.625%
Share Price based on current earnings and growth
	Dividend last year*(1+growth rate)/(Cost of equity-growth rate)
Dividend in last year	=105000/500000
	0.21
Share price	=0.21*(1+7.2%)/(14%-7.2%)
Share price	3.31
Under revised conditions
Year	Dividend	Dividend	PV factor @ 14%	PV of these payments
1	=0.21*107.2%	0.225	0.877193	0.197
2	=0.22512*107.2%	0.241	0.769468	0.186
3	=0.2413*107.2%	0.259	0.674972	0.175
4	=0.259*107.2%	0.277	0.59208	0.164
5	=0.278*107.2%	0.297	0.519369	0.154
5		3.87	0.519369	2.010
		Total		2.886
Share price after 5 years	=0.297*102.625%/(10.5%-2.625%)
	3.87
Share price in revised situation	2.89