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Boomerang Inc. is predicted to earn $ 4 . 8 0 per share. Similar stocks on the market are expected to yield 7 . 4

Boomerang Inc. is predicted to earn $4.80 per share. Similar stocks on the market are expected to yield 7.40% return. The company currently retains 80% of its earnings to invest in a project yielding 8.00% return on equity. If instead Boomerang Inc. decided to distribute 40% of its earnings to shareholders, what effect would this decision have on its share price?a.The price per share would decrease by $22.15b.The price per share would increase by $22.15c.The price per share would decrease by $20.77d.The price per share would increase by $20.77e.The price per share would decrease by $23.08f.The price per share would increase by $23.08

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