Cindy Yap is an equity analyst. She is evaluating the shares CP Industries Berhad ("CPIB"). As of December 2020, the company is still in the red and is not able to pay any stable dividends on its common shares. Cindy Yap decides to value CPIB by using her forecasts based on the assumptions below: - Sales will be RM 5.5 million in 2021 , increasing at 15 percent annually for the next four years (through 2025). - At the end of 2025, it is projected that CPIB will sell for 10.5 times earnings. - Net profit after tax will be 30 percent of sales. - Investment in fixed assets will be 28 percent of sales; investment in working capital will be 7 percent of sales. - Depreciation will be 10 percent of sales. - 30 percent of the investment in assets will be financed with debt. - Interest expenses will be only 2 percent of sales. - CPIB's beta is 2.1 - The risk-free Malaysian government bond rate is 4.5 percent; the equity risk premium is 5.0 percent. - The company has 10.5 million ordinary shares outstanding. - The Malaysian corporate tax rate will be 24%. - The current listed share price as at 31 December 2020 is RM 3.60 Determine the intrinsic value of each ordinary share of CPIB based on the free cash flow to equity valuation method What would be the recommendation to the investor