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Assume that share price of Oman Petro products is 1.5 rials at the end of 2019. We also know that price-to-earnings ratio of similar companies

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Assume that share price of Oman Petro products is 1.5 rials at the end of 2019. We also know that price-to-earnings ratio of similar companies is 20. The company has a 50% Dividend payout policy (50% of earnings is paid out as dividends). Earnings per share is forecasted to be 0.100 Rials for end of year 2020 and it is forecasted to grow by 5% year after year. Assume required return is 10 per cent. 1. Calculate the value per share using the Dividend Discount Model 2. Do you recommend a "Buy or a "Sellusing the DDM method

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