You are the chief financial officer $($CFO$)$ of ABC Inc. The company has performed well over the past year.

After setting aside money for dividends for the shareholders you have $10,000,000$ Riyals in cash. You need

to decide what to do with all the money you made. A meeting with the heads of the finance departments

is called and you asked them for their recommendations. You tell them that although the current year has

been good, you don$$t know how the next year is going to be$.$ You also explain that according to the

company$$s current expansion plans, you will need $1,000,000$ Riyals every year for the next ten years. When

you asked for their opinions, there were contradicting views. From their presentations, you understand

that the current market conditions are as follows:

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 $($ABC$)$ is currently priced at $150$ SAR and the dividends per share will be at $3$ SAR by the

next quarter. Your analysts expect that the average required rate of return for investors in the market is

at $8\%.$ The current dividend growth rate for your stock has been $5\%.$ Evaluate your company$$s stock and

comment on its position $($is it fairly priced?$)$