A firm pays a $$1\mathrm{.}50$ dividend at the end of year one. It has a share price of $$75($P$0)$ and a constant growth rate $($g$)$ of $9$ percent.

a$.$ Compute the required $($expected$)$ rate of return $($Ke$).($Do not round intermediate calculations. Round the final answer to $2$ decimal places.$)$

Required rate of return

$\%$

Also indicate whether each of the following changes would make the required rate of return $($Ke$)$ go up or down. $($In each question below, assume only one variable changes at a time. No actual numbers are necessary.$)$

b$.$ If the dividend payment increases;

multiple choice $1$

Ke will go up$.$

Ke will go down.

Ke remains constant.

c$.$ If the expected growth rate increases;

multiple choice $2$

Ke will go up$.$

Ke will go down.

Ke remains constant.

d$.$ If the stock price increases;

multiple choice $3$

Ke will go up$.$

Ke will go down.

Ke remains constant.