b) Air NZ limited expects earnings this year of $5 per share, and it plans to pay a $3 dividend to shareholders. Suppose Air NZ will maintain the same dividend payout rate, plowback ratio and return on new investments in the future and will not change its number of outstanding shares. Air NZ's return on equity is 15%. a. What sustainable growth rate would you forecast for AirNZ? b. If the required return on the company's stock is 12%, what price would you estimate for Air NZ? c. Suppose instead that Air NZ paid a dividend of $4 per share; if Air NZ maintains this payout ratio in the future, would you estimate a lower or higher price for its stock? Explain