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You gathered the following information on Mobily Stock: 1. Its beta of 1.83 2. It pays dividneds of SAR 10 forever. 3. Its stocks is
You gathered the following information on Mobily Stock: 1. Its beta of 1.83 2. It pays dividneds of SAR 10 forever. 3. Its stocks is currently selling at SAR 91 4. The SIABOR rate (proxy for the risk free rate) is 5%. 5. The annual return on TASI during the past 4 years was 10.25%. 6. The Expected return on TASI 13%. 7. Using the SML, by how much is Mobily's stock currently over, under, or fairly-valued and why? a. The stock is A. under valued B. faily-valued O C. over valued by SAR (do not put any sign, just the SAR amount)
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