Hi All, Just wondering if could share all calculations/ans. for Q.3b about the Suncorp shares? Below are my calculations i) Earnings per share = Net profit available for ordinary shareholders ÷ number of ordinary shares issued Earnings per share (EPS) = 364,000,000 ÷ 1,262,600,000 EPS = .29 P/E Ratio = Current Market Price ÷ Earnings per share P/E = $8.50 ÷ .29 = 29.31 ii) 364,000,000 x 12.33 = 4.488 billion Fair Price=3.56 iii)???? Any help would be much appreciated Cheers Steve

jelly Hi Steve I got the same answer for i) Earnings per share - 0.29 & P/E Ratio - $29.31 but different answer for ii) Fair price - as follows, I think its right Fair price = P/E ratio x Earnings Per Share = 12.33 x $0.68 = $7.62 Regards jelly

Hi , I also got Fair price = P/E ratio x Earnings Per Share = 12.33 x $0.68 = $7.62 as for iii) I recommended a sell as there current price was $8.50 per share as opposed to their current fair price of $7.62

Jelly Thanks Hector. Where did you go to obtain specific company information re Suncorp. I downloaded the Annual Report...thought this was the most obvious solution.

A few Points Here are a few points to consider: Suncorp Merged with Promina (AAMI, Vero etc) - streamlining as a result Suncorp has new CEO Patrick Snowball Suncorp outsourcing non-core activities Exposure to natural disasters/events Cost of re-insurance (insurance for insurers) Project called 20/20 designed to deliver a 20% reduction in costs 20% increase in revenue. I suggest you use good old 'Google' to search for articles relating to the above. The annual report is ok but i found it difficult to wade through all the 'mumbo jumbo' Hope this helps