Home Renu? Inc.'s most recent dividend was? $0.25. The companyplans to double? it's dividend every year for

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Question:

Home Renu? Inc.'s most recent dividend was? $0.25. The companyplans to double? it's dividend every year for the next four? years,then increase it at a constant rate of? 5% per year. To estimatethe intrinsic value of this stock using the dividend?growth ?model,the required rate of return must be

A. greater than? 52.5%.

B. The dividend?growth model is notappropriate for valuing this stock.

C. equal to or greater than? 100%.

D. greater than? 5%.