SuperBet(SBT) is Australia's largest online bookmaker. They provide their own online gambling website which is used in both Australia and America. Using the last 2 years of daily data, the company is reported to have a beta of 1.35 compared to the ASX200. The annual risk-free interest rate is 1.2% and the expected rate of return on the market is 9.5% p.a. The price of SBT at the beginning of the year (2020) was $11.53. Dividend is expected to be $0.45 per share at the end of year.

A) What price do investors expect the stock to sell for at the end of the year if they believe in the CAPM? (Keep the answer to the nearest 2 decimal places)(2 marks)

B) An analyst has forecast the following for SBT: Due to the coronavirus, FCFE will rise by 14% every year for the next two years (year 2021 and 2022), after which FCFE is expected to grow at 3% per year forever.

B1) The FCFE of the company at the end of the year (2020) is expected to be $610 million and 850 million shares outstanding, what is the fair value per share at the beginning of 2020 according two-stage growth model?(Keep the answer to the nearest 2 decimal places)(4 marks)

B2) Assume that the firm applies a plowback ratio of 0.33 before paying dividend end of this year (2020), using the answer from question B1, what is the firm's PVGO at the beginning of 2020? (Keep the answer to the nearest 2 decimal places) (2 marks)