ARAMCO has a dividend growth rate of 0.0495% from year 2019-2022. The company paid a dividend...

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ARAMCO has a dividend growth rate of 0.0495% from year 2019-2022. The company paid a dividend of SAR 0.3518 per share for each quarter in year 2021. Assuming a required rate of return of 3.5%, answer the question below: a. Find the fair price of ARAMCO b. Is the stock traded as over-priced/fairly priced/underpriced? Please refer to figure below for current market price (LAST PRICE) Date & time 08/06/2022.14 03 (GMT-03:00) Share Last High Low (+/-) % Bid Saudi Aramco 40.55 40.85 40.40 0.05A 0.12 A 40.55 Ask Volume 40.60 1782.127 ARAMCO has a dividend growth rate of 0.0495% from year 2019-2022. The company paid a dividend of SAR 0.3518 per share for each quarter in year 2021. Assuming a required rate of return of 3.5%, answer the question below: a. Find the fair price of ARAMCO b. Is the stock traded as over-priced/fairly priced/underpriced? Please refer to figure below for current market price (LAST PRICE) Date & time 08/06/2022.14 03 (GMT-03:00) Share Last High Low (+/-) % Bid Saudi Aramco 40.55 40.85 40.40 0.05A 0.12 A 40.55 Ask Volume 40.60 1782.127

Answer rating: 100% (QA)

a Fair Price of ARAMCO We can use the constant growth dividend discount model DDM to estimate the fa... View the full answer