Shadow plc has 200,000 ordinary shares outstanding. The following information 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	22%
Dividend payout ratio	12%

The P/E ratio applicable to a similar type of business (suitable for Shadow plc) is 15.25. Calculate the value of 50,000 shares in Shadow plc on a P/E basis.

(Total: 5 Marks)