Note: Please show all working out and all steps, including the formuals used $($e$.$g$.$ price earnings ration, earnings per share etc$).$

Jim wants to purchase shares in the company he works in$.$ The company is listed on ASX and has a current share price of $$3\mathrm{.}50.$ Earnings in $2022$ were $$0\mathrm{.}35$ per share and in $2021$ were $$0\mathrm{.}30$ per share. The average PE for similar companies is $11\mathrm{.}5($based upon projected earnings for $2023).$

Question $1$: Review this potential investment by Richards and prepare a recommendation based on your calculations.