Question: Alpha Ltd. plans to increase its dividend by 22% in one year, 18% in two years, 14% in three years, and 10% in four years.

Alpha Ltd. plans to increase its dividend by 22% in one year, 18% in two years, 14% in three years, and 10% in four years. Its most recent dividend paid was $2.5. The management believes that after all these years, dividend growth will settle down to a constant, sustainable rate of 4.5% forever. The required rate of return for Alpha Ltd. is 15%. What is the value of its share today? Show your workings and round your final answers to 2 decimal places. 1 Total marks: 10 marks

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