International Buff Enterprise (IBE) is expected to pay a dividend of $2 next year, $2.5 in the second year, and to grow the dividend at a constant growth rate of 2% starting in year 3. If the required rate of return for IBE is 6%, what is the intrinsic value of a share of IBE under the dividend discount model? (Hint: Draw a timeline.)

	A.	$63.75
	B.	$56.73
	C.	$60.85
	D.	$62.50

Given an Annual Percentage Rate (APR) of 8% with quarterly compounding, the equivalent interest rate for effective annual rate is ____%.

	A.	8.0%
	B.	1.8%
	C.	2.0%
	D.	8.2%