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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?

 

4 percent.

 

5 percent.

 

7 percent.

 

9 percent.

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Question added by Emad Mohammed said abdalla , ERP & IT Software, operation general manager . , AL DOHA Company
Date Posted: 2015/03/24
Piotr Konopka
by Piotr Konopka , Specialist Helpdesk / Support Techn. Services / Chief Specialist. Multimedia Support Techn. Services , Telecomunication Poland - Orange Poland

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.

 

Mir Mujtaba Ali
by Mir Mujtaba Ali , Internal Audit Manager , Confidential

9% or0.09 is the right answer

.............

Alex Al Yazouri
by Alex Al Yazouri , General Manager , Al Mushref Cooperative Society

4  percent  +5  percent  =  9 percent.

Emad Mohammed said abdalla
by Emad Mohammed said abdalla , ERP & IT Software, operation general manager . , AL DOHA Company

>>>>>>>>>>>>  9 percent<<<<<<<<<<<<<<

Wasi Rahman Sheikh
by Wasi Rahman Sheikh , WAREHOUSE SUPERVISOR , AL MUTLAQ FURNITURE MFG

Agreed with champs <<<<<<<<<<

Im gonna say9%.................................................

Nasir Hussain
by Nasir Hussain , Sales And Marketing Manager , Pakistan Pharmaceutical Products Pvt. Ltd.

it should be09% .................................

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