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
Join a community of subject matter experts. Register for FREE to view solutions, replies, and use search function. Request answer by replying!