(b) K Lid's characterstic line has been observed to be defined by the linear equation Rk=0.043+0.9Rm after the entity's share returns have been regressed against the Stock Exchange's corresponding returns overtime using the Ordinary Least Squares (OLS) technique. The stock market rate of retum is 18% whilst the market risk premium stands at 8%. The company's share is currently trading at $45 cum-div and $38 ex-div. The entity generated a Return on Equity of 14% and a dividend payout ratio of 50%. REQUIRED: Calculate K Ltd's theoretical price or intrinsic value per share. [10 marks] [Total 25 Marks]