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Time left 0:07:07 Question 9 Not yet saved Marked out of 1.00 Flag question Question text Find the market-implied total required return on equity of buying a $180 stock now that's expected to pay annual dividends forever, with the next $14 dividend to be paid in one year (t=1). The dividend is expected to grow forever at -2% per annum (note the negative sign). Therefore the second dividend (paid at t=2) is expected to be $13.72 (=(14*(1+-0.02)^1). Assume that the stock can be accurately valued with the DDM. The stock's market-implied total required return on equity is:
a.
14% pa
b.
5.777778% pa
c.
5.662222% pa
d.
3.777778% pa
e.
-2% pa
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