A firm pays a $1.50 dividend at the end of year one (D₁), has a stock price of $117 (P₀), and a constant growth rate (g) of 10 percent. a. Compute the required rate of return (K_e). (Do not round intermediate calculations. Input your answer as a percent rounded to 2 decimal places.)

e}ru:td"rewenssA"i",:"n"ioptriscdeb_ta,"{}":62"_],[0":67"_l,ul:n1"_5,"llnu":26"_},:{2"_3,"seal:f2"_4,"-1":50"_1,:-4"_2,"-1":31"_0,":_5,":04""_e,lsfa":48"_},:{7"_3,"}]62:27"_7,"59":34"_[{":23"_e,ru:t5"_4,"1"leit%20Tew"N":mena,"}]seal:f7"_4,":14"_5,"[]":33"_},0""2":c2,"0"10:"1""c",00"1":c0{"":19"_},3""2":"0:{9"_5,"]]}}%3B"0)23,%2020%2025,21b(rg:%20orol-cndougrckba:"8""_},)"30%2020,22,%2015(2gb"r":_9,"N"IOSTUE"Q":76"_:{5"_5,"}}""":79"_","%25":75"_:{0"_3{"":_2{"":20"_,{}}%3B"0)23,%2020%2025,21b(rg:%20orol-cndougrckba:"8""_",ermbNulety%20sceaneroleTagntceer%20pseonspre:"7""_",getaenrcpe:"0"_7,":11"_7,""}htig"r":68"_",0)23,%2020%2025,21b(rg:"9""_e,ru:t3"_4,"N"IOUTOL"S":76"_:{5"_5,"}}:23"_5,":21"_2,"uetr":63"_:{5"_5,"C"RIMENU:"3"_7{"":29"_},"}:"9"_7,"]"5)a("[":75"_:{6"_5,""}:"9"_7,"""":75"_:{0"_3{"":_2{"":20"_,{}}%3B"0)23,%2020%2025,21b(rg:%20orol-cndougrckba:"8""_},)"30%2020,22,%2015(2gb"r":_9,"N"IOSTUE"Q":76"_:{5"_5,"}}""":79"_",rnturef%20%20oteRa:"5"_7{"":30"_:{2""_:{0"_2{"[[":13"_e,lsfa":41"_},n"owpDro"d":27"_1,:-5"_2,"{}":75"_e,lsfa":82"_:{8"_2,"""":22"_e,lsfa":35"_e,ru:t6"_3,"{}":55"_",leab%20TedtltiUn:"9"_6,":37"_1,":18"_5{":[5"_6{" Indicate whether each of the following changes will increase or decrease the required rate of return (K_e). (Each question is separate from the others. That is, assume only one variable changes at a time.) No actual numbers are necessary. b. If the dividend payment increases:

}uetr":ederswAnis,"""":ontiipcres_dab"t},:{2"_6,"0]:[7"_6,"llnu":51"_},e}lsfa":cylipo,"Z"-%20A%20:%20rtso:"r"deOrrtso,""]esasrenc"I",esasreec"D:[t"is"l",L1:"e"amnNowpDro"d0,":25"_:{0"{"":26"_},:{2"_3,"seal:f2"_4,"-1":50"_1,":24"_1,:-1"_3,":05""_0,":_4,"seal:f8"_4,"{}":37"_],4}31":77"_5,10":34"_[{":23"_e,ru:t5"_4,"1"leit%20Tew"N":mena,"}]seal:f7"_4,":24"_5,"[]":33"_},0"10:"1""c",72"1":c0{"":19"_},3""2":"2",23:"1","3""2":"0:{9"_5,"]]}}t"isnLowpDro%20dgema_ibg:"7""_",r11__cllce0_leab_t"0":38"_",wnDoopdr:"7"_2,":05"_2,"e}ru:t3"_4,"N"IOUTOL"S":76"_:{5"_5,"}}""":79"_",esasrenc"I":75"_:{6"_5,""}:"9"_7,"""":75"_:{0"_3{"":_2{"":20"_,{}}"}ONTIESQU:"6"_7{"":55"_},"}:"9"_7,"n"uret%20rofe%20at%20redirquRe:"5"_7{"":30"_:{2""_:{0"_2{",[}]"}gema_ibgt%20isnLowpDro"d":_7,"n"owpDro"d":27"_0,":25"_},uetr":43"_",ONTILUSO:"6"_7{"":55"_},"}:"9"_7,"s"seeacrIn:"5"_7{"":56"_},""":79"_",:"5"_7{"":30"_:{2""_:{0"_2{"},}}N"IOSTUE"Q":76"_:{5"_5,"}}""":79"_",ldie%20ynddeviDi:"5"_7{"":30"_:{2""_:{0"_2{",[}]"})%3B30%2020,22,%2015(2gb%20rr:locod-unrokgac"b":_8,""}0)23,%2020%2025,21b(rg:"9""_",ONTIESQU:"6"_7{"":55"_},"}:"9"_7,"""":75"_:{0"_3{"":_2{"":20"_,{}}%3B"0)23,%2020%2025,21b(rg:%20orol-cndougrckba:"8""_},)"30%2020,22,%2015(2gb"r":_9,"N"IOSTUE"Q":76"_:{5"_5,"}}""":79"_",:"5"_7{"":30"_:{2""_:{0"_2{"[[":13"_e,lsfa":41"_},n"owpDro"d":27"_1,:-5"_2,"{}":75"_e,lsfa":82"_:{8"_2,"""":22"_e,lsfa":35"_e,ru:t6"_3,"{}":55"_",leab%20TedtltiUn:"9"_6,":27"_1,":38"_5{":[5"_6{" c. If theexpected growth rate increases:

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