q3.3. Shadow plc has 500,000 ordinary shares outstanding. The following information (in s) is extracted from the annual report of the firm for the year ended 31 December 20X1;

Profit before taxation	3,000,000
Corporation tax rate	19%
Dividend payout ratio	33%

The P/E ratio applicable to a similar type of business (suitable for Shadow plc) is 10. Calculate what would be a fair value for a single share and for the market capitalisation of Shadow plc on a P/E basis.

(Total: 10 Marks)