A mature company on Beverage and food industry, with stable earning expects to have earnings per share (EPS) of 30 AED in the coming year and Its current stock price is 280 AED the management must decide between the following alternatives pay all of its earnings as dividends and abandon the new investment in Dubai or cut Its Dividend payout rate to 75% and implement the Dubai project. If the second policy is followed there is a divergence in the estimation of the return on new investment . (i) Pay all its earnings as dividends. Because of the status of the company and its strength in the market, the CEO believes that cash flow from operations is sufficient to continue to reinvest in growth, though has to abandon Dubai project for next year, and decided to pay out all of its earnings to investors. Besides that, current economic conditions are week due to the crisis, and the CEO is more willing to pay dividends than to enter a program of share buybacks. In addition, there is a favorable tax environment since the 2003 act significantly changed the tax treatment of corporate dividends for most taxpayers. 1-What is the dividend yield and the growth rate of the firm? ( Use Dividend Payout) 2-Calculate the required rate of return 3-what is the firms P/E ratio?