ABC Company announced yesterday that their next annual dividend will be SAR 7 and that future dividends will be increasing by 10 percent annually. How much are you willing to pay for one share of this stock if your required return is 12 percent? If the stock price is SAR 240, is the stock under or overvalued? Calculate dividend yield? Is it preferred to distribute dividends or not in your opinion and what do we mean by dividend policy? Explain briefly different theories of dividends? What is your recommendation for buying or not the stock according to available information?