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Question 122 - CTFA discussion

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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 at 5% forever?

A.
4 Percent
Answers
A.
4 Percent
B.
5 Percent
Answers
B.
5 Percent
C.
7 Percent
Answers
C.
7 Percent
D.
9 Percent
Answers
D.
9 Percent
Suggested answer: D
asked 16/09/2024
Rajesh Tripathy
31 questions
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