Stock market: The stock market has been doing well. The average growth in stock prices is at 10% year over year. The company's stock (RICH) is currently priced at 150SAR and dividends per share will be at 3 SAR by the next quarter. you analysts expect that the average required rate of return fir investors in the market is at 8%. The curreny dividend growth rate for your stock has beeb 5%

assess wheter the comapny's stock price is overvalued, undervalued or appropriate. if you find that is over- or undervalued, what would you need to change for stock to br appropriately priced?

Important point to consider:

You can issue shares ( does this have any implications?). You can purchase stock (are they safe investment?)