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Calculate the current value of the stock

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Reference no: EM13947689

1. Alpha Inc has just paid a dividend of $0.50 per share. The dividends are expected to grow at 24% per year for the next two years and at 8% per year thereafter. If the required rate of return in the stock is 16%, calculate the current value of the stock.

A) $1.11
B) $7.71
C) $8.82
D) None of the above 

Reference no: EM13947689

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