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Questions If you expected a stock price to be 55 SAR, 5% is the dividends growth rate, and this stock pay dividends of 2 SAR.

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  1. If you expected a stock price to be 55 SAR, 5% is the dividends growth rate, and this stock pay dividends of 2 SAR. What is the discount rate?
  2. If the dividends growth rate is 2%, and this stock pay current dividends (D0) of 2 SAR, discount rate is 4%. Calculate the value of this stock.

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