IGM Financial has paid a dividend of $2.25 per year for the last five years,...
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IGM Financial has paid a dividend of $2.25 per year for the last five years, however, due to COVID, investors think dividends will be reduced. Investors think dividends for the next two years will be $1 and will then resume at $2.25 per year and will grow at 2% indefinitely after that. If investors are right, what is the value of a share of IGM? Assume a discount rate of 7%.
Select one: a. $37.05 b. $41.11 c. $45.00 d. $47.00
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