XYZ LTD is the sole manufacturer of a unique building material in Solwezi. The company 's common stock can be valued at using the constant dividend one year growth model. It is expected that the return on the market will be 14% and the risk free rate is 6% .It is also estimated that the dividend one year from now will be k3.40 and that the dividend will grow at a constant rate of 6% . The stock's beta has been estimated to be 1.50 . The common stock is currently selling for k30 .00 per share in the market place .

I) what value would you place on one share of this of this company 's common stock ? 2) comment on the fairness of the current market price of the common stock with justification !