A common stock just paid 50 dirhams as a dividend per share. This dividend is expected to grow by 5% until infinity. The required rate of return is 15%. Respond to the following.

a. Determine the value of this common stock.

b. The market price of this stock is currently 500 dirhams per share. What should be the position of an investor in this case (i.e. buy or sell)? Motivate your answer.