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A stock index ETF is traded for $ 80 per share. Each share of ETF will pay a dividend of $ 4 in one year.

A stock index ETF is traded for $ 80 per share. Each share of ETF will pay a dividend of $ 4 in one year. This dividend is expected to increase by 3% every year forever. If you are planning to buy this ETF for an investment trust and to hold it forever, what is the IRR of buying this stock?

3%

15%

8%

5%

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