Zambeef Products PLC is principally involved in the production, processing, distribution and retailing of beef, chicken, pork, milk, dairy products, eggs, stock feed and flour. The Group also has large row cropping operations (principally maize, soya beans and wheat), with approximately 7,787 hectares of row crops under irrigation which are planted twice a year, and a further 8,694 hectares of rainfed/dryland crops available for planting each year. The company is listed on the Lusaka Stock Exchange and the London Stock Exchange. Historically the earnings of the company have been growing at a compound annual growth rate of 11% per annum, for the past five years. It is envisaged that the company will continue to grow at this rate for the next 3 years, and thereafter, grow at a constant rate of 3% forever. Assume that the most recent dividend per share paid is K0.35. The Book Value of Equity is K2 897 477 000, the Earnings Available for Ordinary Shareholders is K4 037 000 and the company currently has 300 580 000 ordinary shares in issue. Historically, the Lusaka Stock Exchange All Share Index (LASI) recorded an annual return of 18.5%. The risk-free rate as proxied by the treasury bill yields is currently 14%, and assume that the company beta is 0.24.

Based on the information above, answer the following questions:

i. Using the CAPM, calculate the required return for Zambeef

ii. Calculate the share Price of Zambeef

iii. Calculate the market to book ratio of Zambeef

iv. Calculate the Price to Earnings Ratio of Zambeef

v. Assuming that the yields on the treasury bills reduces to 12 percent, and the beta of Zambeef increases to 0.4, calculate the new share price of Zambeef.