Find the market-implied total required return on equity of buying a $245 stock now that's expected to pay annual dividends forever, with the next $2 dividend to be paid in one year (t=1). The dividend is expected to grow forever at 5% per annum . Therefore the second dividend (paid at t=2) is expected to be $2.1 (=(2*(1+0.05)^1). Assume that the stock can be accurately valued with the DDM. The stock's market-implied total required return on equity is:

Select one: a. 10.816327% pa b. 10% pa c. 6.4125% pa d. 6.107143% pa e. 5.816327% pa