Company Paris will pay a dividend of $105$ in the next year, which corresponds to $70\%$ of EPS.

The remaining $30\%$ will be reinvested. The expected return is $10\%.$ In the future, Paris will not have a

competitive advantage and keep its distribution and investment policy unchanged.

$-$ What is the return of new investments?

$-$ What will be the dividend growth rate?

$-$ What is the price of Paris stock?

$-$ What would be the price of Paris stock if the company decide to reinvest $50\%$ of EPS? Comment

on the result.