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What is the market's required return on this investment if the dividend is expected to grow at5% forever?
4 percent.
5 percent.
7 percent.
9 percent.
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 at5% forever?
9 percent.
9% or0.09 is the right answer
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4 percent +5 percent = 9 percent.
>>>>>>>>>>>> 9 percent<<<<<<<<<<<<<<
Agreed with champs <<<<<<<<<<
Im gonna say9%.................................................
it should be09% .................................
