QUESTION 1 [25 Marks] As a savvy investor in Bursa Malaysia, you have been provided with the following data of Zalora Tech Bhd, a company involved in the technology sector. ZALORA TECH BHD Income Statement 2018 2019 2020 Sales Revenue 800m 925m 980m Net Profit After Tax 60m 62m 88m Earnings per share 0.15 0.10 0.18 Dividend per share 0.10 0.05 0.03 No. of Common Stocks outstanding 500m Balance Sheet Current Assets 130m Fixed Assets, net depreciation 350m Intangibles 70m Shareholders Equity 420m Current Liabilities 80m Long Term Liabilities 50m Other information ; Latest Closing Price of Zalora Tech Bhd stock on 1/7/2021 RM2.30 Beta of Zalora Tech Bhd 1.60 Average annual bond yield on Malaysian Government Securities 5.2 % Average annual return on KLSE Composite Index 13.5 % Average P/E ratio for technology sector 16.7 x Required: (b) Using P/E approach, estimate the Target Price for Zalora Tech Bhd. [4 marks] (e) Describe and explain other analysis that should be explored before deciding whether to buy or not the stock. [6 marks]