Suppose that the current date is December 31, 2008. As a consequence of the financial crisis: (i) Alpha Corp. will not distribute any dividends in 2009, 2010, 2011, 2012, and 2013; (ii) for each of these years, the expected return required by investors is equal to 10% per year. You predict that the economy will recover. Based on the information you have on December 31, 2008, you predict that: (i) the annual dividend paid by Alpha Corp. on December 31, 2014 will equal $20 and then grow at 5% per year; (ii) On December 31, 2013, the expected return required by investors will go down from 10% to 7% per year (its normal level) and stay constant afterwards. 1) Based on your forecasts, determine the share price of Alpha Corp. on December 31, 2013. 2) What is your estimation of the share price of Alpha Corp. on December 31, 2008? 3) Prior to the crisis, the share price of Alpha Corp. was equal to $950. Based on your computations, what fraction of the drop in price is due to: (i) cash-flow news: (ii) required return news