Question: Zagiig Corp. will pay a $2.91 per share dividend next year. The market expects that it will increase its dividend by 3.8% per year, indefinitely.

Zagiig Corp. will pay a $2.91 per share dividend next year. The market expects that it will increase its dividend by 3.8% per year, indefinitely. If there should be a fair rate of return of 9% on the stock, how much is it worth today?

A. $55.96

B. $44.85

C. $33.74

D. $22.63

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