Alexs Accountancy Software is expected to pay annual dividends of $4.30, $4.70 and $5.10 over the next three years, respectively. After that, the company expects the dividend to grow at a constant rate of X% p.a. [use the last four digits of your student ID*] per share forever. * If your student ID is 876543 then the growth rate would be 6.543% Required: (Please show all workings to maximise marks. No workings no marks). A. What is the value of this stock at a required return of 12.5%?

use 5.659%