Crane Sporting Goods will have earnings per share of $6 for ever. Rather than re-invest these earnings and grow, the firm plans to pay out all its earnings as a dividend. Cranes current share price is $60. a) What is the interest rate being used to discount future dividends paid by Crane? b) Suppose Crane could cut its dividend pay-out rate to 75% forever, and use the retained earnings to invest in new stores. This investment would cause dividends to increase 3% for ever. Assuming the same interest rate you found in a), what effect would this policy have on Cranes stock price