STC Stock has a bota of 114 and has been paying fixed amount of dividends of SAR 10 and will continue doing so forever STC is currently selling at SAR 61. Using the SML, what can you say about STC stock if you know that TASI average annual return over the past 4 years was 10 25%, however, the expected return of TASI is 11% Note that the SIABOR rate (proxy for the risk free rates By how much is the stock over or under valued? a. the required rate of return on common equity (s) = (une 2 decimals) b. The intrinsic value is SAR (use 2 decimals) b. STC Nock is A undervalued OB, over-valued by SAR (use 2 decimals and ONLY absolute value)