2. Ecology Labs Inc. will pay a dividend of $5.60 per share in the next 12 months (D1). The required rate of return (Ke) is 19 percent and the constant growth rate is 12 percent.

a. Compute the price of Ecology Labs' common stock.

b. Assume K_e, the required rate of return, goes up to 22 percent. What will be the new price?

c. Assume the growth rate (g) goes up to 15 percent. What will be the new price? K_e goes back to its original value of 19 percent

d. Assume D₁ is $6.40. What will be the new price? Assume K_e is at its original value of 19 percent and g goes back to its original value of 12 percent.