3 A firm's stock sells for $25 currently. It will pay a $1.50 dividend next-year. If the shareholders demand a 12 percent return, at whaf annual rate must dividends grow? 12% 6% 8% D E Impossible to compute None of the above Current details on the common stock of Alex Electronics Incorporated include: (a) (b) it paid a $3.00 dividend last year (Do-$3.00) due to competitive advantages they currently hold, they expect earnings will grow 20 percent annually for the next two years investors require an 18 percent return on stocks comparable to Alex after 2 years earning's growth will decline to 10 percent and remain there, (c) (d) 4. What is the current price of Alex stock? 5. Because of production problems, Alex's major competitor is forced to delay the introduction of a replacement for Alex's principal product for several years. If that delay causes an upward revision in Alex's growth for years 3 and 4. bow does that affect the current price and why