a$.$ What growth rate of earnings would you forecast for DFB$?$

b$.$ If DFB$\text{'}$s equity cost of capital is $11\mathrm{.}2\%,$ what price would you estimate for DFB stock today?

projects. If DFB maintains this higher payout rate in the future, what stock price would you estimate now? Should DFB raise its dividend?

a$.$ What growth rate of earnings would you forecast for DFB$?$

The earnings growth rate will be $\%.($Round to two decimal places.$)$

b$.$ If DFB$\text{'}$s equity cost of capital is $11\mathrm{.}2\%,$ what price would you estimate for DFB stock today?

The stock price will be $$,.($Round to the nearest cent.$)$

projects. If DFB maintains this higher payout rate in the future, what stock price would you estimate now? Should DFB raise its dividend?

If DFB maintains this higher payout rate in the future, the earnings growth rate will be $\%.($Round to two decimal places.$)$

If DFB maintains this higher payout rate in the future, the stock price will be $ $($Round to the nearest cent.$)$

Should DFB raise its dividend? $($Select the best choice below.$)$

A$.$ DFB should not raise dividends because companies should always reinvest as much as possible.

B$.$ DFB should raise dividends because the return on new investments is lower than the cost of capital.

C$.$ DFB should raise dividends because, according to the dividend$-$discount model, doing so will always improve the share price.

D$.$ DFB should not raise dividends because projects have positive NPV when the return on new investments is higher than the firm's cost of capital.