Alberta Oilsands Inc. has a share price of $30 and an expected EPS of $7 next year. The company currently pays out 100% of earnings as dividends, but is considering a new policy of paying out just 30% of dividends. The firm's return on equity is 6.4%.

1.What is the market capitalization rate?

2.What will be the next dividend under the new policy?

3.What will be the growth rates of earnings and dividends under the new policy?

4.What will be the share price under the new policy?