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Title: principles of investment Question 1: XYZ Company paid its last dividend OMR 0.200 per stock. The dividend is expected to grow 10% for the

Title: principles of investment Question 1: XYZ Company paid its last dividend OMR 0.200 per stock. The dividend is expected to grow 10% for the first two years and 6% constant rate afterwards for the foreseeable future. The Current rate of 28-day treasury bills rate is 2.5%, MSM30 average return is 7.5% and beta () of XYZ stock is 1.25. Calculate the current price of the stock (P0).

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