Can someone please complete part D? The answer is not 12.5 or 13%. Thanks!

House of Haddock has 3,300 shares outstanding and the stock price is $180. The company is expected to pay a dividend of $36 per share next year, and thereafter the dividend is expected to grow indefinitely by 5% a year. The president, George Mullet, now makes a surprise announcement: He says that the company will henceforth distribute half the cash in the form of dividends and the remainder will be used to repurchase stock. The firm is expected to generate earnings of $118,800 each year. The annual dividend will be paid prior to the annual dividend repurchase.

a. Total value before announcement: 594,000

b. Total value after announcement: 594,000

c. Value of one share before announcement: 180

D. What will be the dividend growth rate when the firm switches to the new distribution method? (Do not round intermediate calculations. Enter your answer as a whole percent.)