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Alpha Company has just declared a dividend of $5 per share. The company expects the...

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Finance

Alpha Company has just declared a dividend of $5 per share. The company expects the following dividends:

Year 1: $5.50

Year 2: $6.50

Year 3: $7.00

After year 3, the dividends are expected to grow at 3% per year. If investors' required rate of return is 12%, calculate Alpha's stock price today.

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