Please answer asap

Find the market-implied total required return on equity of buying a $405 stock now that's expected to pay annual dividends forever, with the next $3 dividend to be paid in one year (t=1). The dividend is expected to grow forever at 4% per annum . Therefore the second dividend (paid at t=2) is expected to be $3.12 (=(3*(1+0.04)^1). Assume that the stock can be accurately valued with the DDM. The stock's market-implied total required return on equity is:

Question 1Select one:

a.

4.740741% pa

b.

5.127585% pa

c.

8% pa

d.

8.740741% pa

e.

12.74074% pa