\#12. (18 points) HUFS Corp. expects to have earnings per share (EPS) of $5.21 in the coming year. The company pays $2.24 per share in annual cash dividends. HUFS plans to invest the retained earnings of $2.97 per share (=5.212.24) in developing a new product. The return on the new investment is 16%. The cost of equity is 11.5%. Note that the cost of equity, EPS, and the number of shares remain unchanged even after the announcement. a) (5 points) What is the growth rate of this firm? b) ( 5 points) What will the share price be according to the Gordon growth model? 5 c) (8 points) If HUFS increases its dividend payments from $2.24 to $4.49 per share, what will the new share price? Do you think HUFS' old shareholders will accept this new dividend policy