# Practice Exam Vol 2 Exam 2 am

For those who have done Sch Practice Exam Vol 2 Exam 2 am, Q 37 and 39, could somebody tell me why the justified price is different for these 2 questions, even though it doesn’t affect the answer.

the two different prices are due to the fact that one question is using BV and the other one is using sales.

But the sales is actually irrelevant as you need to find the price anyway.

is this year Volume2 much more difficult than v1? I remember last year v2 in level1 was too hard to mock the real exam? Any idea? thx

it isn’t irrelevant because you are using the respective price multiples to determine the price… so if one multiple is based on sales and one is based on BV, then the likely outcome using the multiples method will be that the prices are also different. Sorry if I am misunderstanding your question.

In the P/S calculation, the ans divided 2.5 by 115 (the sales), and then it multiplied the P/S by the sales to get the price. The P/S ratio is not a market average ratio. It comes the justified price of itself. If it is a market average, I agrees the two prices could be different. But it actually comes from the justified price. That’s why I said the sales is irrelevant for price calculation. As long as we use the figures of the same company to calculate its ratio, e.g. P/S, P/B, the justified price must be the same. Otherwise the financial statement must be wrong. I have figured out it is something to do with the timing.