3. MOOP 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 what annual rate must dividends grow? A 12% 6% 8% Impossible to compute E. None of the above Current details on the common stock of Alex Electronics Incorporated include: it paid a $3.00 dividend last year (Do=$3.00) (b) due to competitive advantages they currently hold, they expect earnings will grow 20 percent annually for the next two years (c) investors require an 18 percent return on stocks comparable to Alex (d) after 2 years earning's growth will decline to 10 percent and remain there. 4. What is the current price of Alex stock