Please answer ASAP

Find the market-implied total required return on equity of buying a $200 stock now that's expected to pay annual dividends forever, with the next $16 dividend to be paid in one year (t=1). The dividend is expected to grow forever at -3% per annum (note the negative sign). Therefore the second dividend (paid at t=2) is expected to be $15.52 (=(16*(1+-0.03)^1). Assume that the stock can be accurately valued with the DDM. The stock's market-implied total required return on equity is:

Question 7Select one:

a.

-3% pa

b.

2% pa

c.

4.7045% pa

d.

4.85% pa

e.

5% pa