18. Rochelle Corp. is expected to payout 40% of its earnings and to earn an average of 15% per year on its incremental reinvested earnings forever. Stocks with similar risk are currently priced to provide a 12% expected return. By what percentage can Rochelle's earnings be expected to grow each year? What is an appropriate price-earnings multiple for the stock? What portion of the return on Rochelle stock is expected to come from capital gains?