Chitoshi Co is considering a bid for Dorica Co. both companies are stock- market listed and are in the same business sector. Finacial information on Dorica Co which is shortly to pay its annual dividends is as follws: Number of ordinary shares 5 million, Ordinary Share price ( ex div basis) $3.30, Earning per share 40.0cent, proposed pay out ratio 60%, Dividend per share one year ago 23.3 cents, Dividend per share two years ago 22.0 cent, Equity beta 1.4, other relevance finacial information average sector price/earnings ratio 10, risk free rate of return 4.6% and return on the market 10.6% calculate the value of Dorica Co using the following methods. a) price/ earning ratio method. b) Dividend growth model; and discuss the significance to chitosh co, of the values you have calculated, in comparison to the current market value of Dorica Co.