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5. Virgo Airlines will pay a $4 dividend next year on its common stock, which is currently selling at $100 per share. What is the
5. 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? ke = (D1/P0) + g ke = ($4/$100) + .05 = .09 C 4 percent. 5 percent. 7 percent. 9 percent
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