Using the last 2 years of daily data, the company is reported to have a beta of 1.04 compared to the ASX200. The annual risk-free interest rate is 0.5% and the expected rate of return on the market is 10% p.a. The price of CHS at the beginning of the year (2020) was $2.53. Dividend is expected to be $0.19 per share at the end of year.

B) An analyst has forecast the following for CHS: Due to the coronavirus, FCFE will drop by 3.6% every year for the next two years (year 2021 and 2022), after which FCFE is expected to grow at 2.4% per year forever.

B1) The FCFE of the company at the end of the year (2020) is expected to be $290 million with 330 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)

B2) Assume that the firm applies a plowback ratio of 0.4 before paying dividend end of this year, using the answer from question B1, what is the firms PVGO at the beginning of 2020? (Keep the answer to the nearest 2 decimal places)

B3) You intend to buy the stock at the end of 2020. Your friend believes that the firm will fail to achieve any forecasted growth (g=0). What will be the P/E ratio of CHS at the end of this year, assuming market price follows CAPM (round to 2 decimal places). How long does he think you should expect to recover your initial investment by dividends, ignoring time value of money and capital gain? (Answer in years and round to the nearest integer)