question archive calculate the current value of the Sohar stock based on the following information
calculate the current value of the Sohar stock based on the following information
Subject:FinancePrice:2.86 Bought7
calculate the current value of the Sohar stock based on the following information. The company paid dividend OMR 11.4 per share last year. The dividends are expected to increase at 4 % in perpetuity and the discount rate is 0.073. Select one: O a. 359.2727 Ob. 345.4545 O c. 89.257 O d. All the given answers in this question are wrong O e. 92.9756
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The price is computed as shown below:
= [ Dividend paid x (1 + growth rate) ] / (discount rate - growth rate)
= [ OMR 11.4 x 1.04 ] / (0.073 - 0.04)
= OMR 11.856 / 0.033
= OMR 359.2727
