As a firm operating in a mature industry, Chinche Farms is expected to maintain a constant dividend payout ratio and constant growth rate in earnings for the foreseeable future. Earnings were Kshs.4.50 per share in the recently completed fiscal year. The dividend payout ratio has been 55% in recent years and is expected to remain so. Chinche Farms return on equity is expected to remain at 10% in the future and you require an 11% return on stock. Required: (a) Using the constant growth rate model, calculate the current value of Chinche Farms share. (b) After an aggressive acquisition and marketing programme, it now appears that Chinche Farms earnings per share and return on equity will grow rapidly over the next two years. Assuming that Chinche Farms dividend will grow at a rate of 15% for the next two years, returning in the third year to the historical growth and continuing at the historical growth for the foreseeable future, calculate Chinche Farms current market price.