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