Eastern Electric's recent annual dividend was $164 per share and its stock currently sells for about $27

Question:

Eastern Electric's recent annual was $164 per share and its stock currently sells for about $27 per share.
a. If investors believe the growth rate of dividends is 3% per year, what rate of return do they expect to earn on the stock?
b. If investors' required rate of return is 10%, what must be the growth rate they expect of the firm?
c. If the sustainable growth rate is 5% and the plow· back ratio is .4, what must be the rate of return earned by the firm on its new investments?
Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...