a. The constant annual rate of growth in dividends is _____%. (Round to two decimal places.)

b. The firm's beta is _____. (Round to one decimalplace.)

c. The cost of equity would _____ if the expected growth rate of dividends were to decline.

Option A: increase

Option B: be the same

Option C: decline

Please solve step by step all the sections that need to be answered in the question. Answer all parts A, B, and C given in the question.

(Growth rate in stock dividends and the cost of equity) In March of this past year, Manchester Electric (an electrical supply company operating throughout the southeastern United States and a publicly held company) was evaluating the cost of equity capital for the firm. The firm's shares are selling for $40.36 a share; it expects to pay an annual cash dividend of $2.68 a share next year, and the firm's investors anticipate an annual rate of return of 17%. a. If the firm is expected to provide a constant annual rate of growth in dividends, what rate of growth must the firm experience? b. If the risk-free rate of interest is 3% and the market risk premium is 6%, what must the firm's beta be to warrant an expected rate of return 17% on the firm's stock? c. The discounted cash flow method for evaluating a firm's cost of equity financing is based on the assumption that future dividends grow at a constant rate forever. How do you think the cost of equity would be affected if the rate of growth in future dividends were to decline over time. a. The constant annual rate of growth in dividends is %. (Round to two decimal places.)