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What is the market required return on this investment

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Reference no: EM131106953

Virgo Airlines will pay a $4 dividend next year on its common stock, which is currently selling at $100 per share. What is the market's required return on this investment if the dividend is expected to grow at 5% forever?

A. 4 percent.

B. 5 percent.

C. 7 percent.

D. 9 percent.

Reference no: EM131106953

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