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QUESTION 12 A common stock just paid 50 dirhams as dividend per share. This dividend is expected to grow by 5 until Infinity. The required

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QUESTION 12 A common stock just paid 50 dirhams as dividend per share. This dividend is expected to grow by 5 until Infinity. The required rute of return is 15. Bespond to the following a. Determine the value of this common stock b. The market price of this stock is currently 500 dirhams per share. What should be the position of an investor in this case buy or state your answer c. You can purchase one share of Sumter Company common stock for s80 today. You expect the price of the common stock to increase to $85 per sharine year. The come an annual dividend of 53.00 per share. What is your expected rate of return for Sumterstock

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