anticipate an annual rate of return of $18\%.$

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 $8\%,$ what must the firm's beta be to warrant an expected rate of return $18\%$ on the firm's stock?

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.$)$

b$.$ The firm's beta is $.($Round to one decimal place.$)$

c$.$ The cost of equity would

if the expected growth rate of dividends were to decline. $($Select from the drop$-$down menu.$)$

increase

be the same

decline