Alpha Inc. just announced that it plans to cut its perpetual dividend from $2.00 to $1.75 per share. The dividends are annual and the first payment is in one year. Before the announcement, its dividends were expected to have a 5% annual growth rate indefinitely With the announcement, the dividend growth rate is expected to be 10% annually indefinitely. Under the assumption the risk of the firm's operations has not changed, the value of a share of Alpha Inc. is currently (.e. after the announcement) $35. Use this information for questions 1 and 2 I of 12 Mark Before the announcement its stock value was closest to: O a. $30.00 b. $17.50 Oc. $40.00 Od $45.00 O e. $20.00 Unsure 2 of 12 Mark What is the value of the stock expected to be just short of one year from this point in time (i.e. Immediately before the day before the dividend of $1.75 is to be paid)? Make the usual simplifying assumption that all matters related to the payment of the dividend take place instantaneously on that day. Choose the closest value. O a $40.25 O b. $50.00 Oc. $18.00 Od $30.00 e. $21.00 Incrire