A firm that has an ROE of 12% is considering cutting its dividend payout. The stockholders of the firm require a return of 13% and earnings per share are currently $2.32. Given this information which of the following statement(s) is/are correct? I. All else equal the firm's growth rate will accelerate after the payout change II. All else equal the firm's stock price will go up after the payout change Answer a. I only b. I and II c. II only