DFB, Inc expects earrings next year of 54.95 per share, and it plans to pay a $3.10 dividend to shareholders assume that is one year from now). DFB will retain $1.85 per share of its camins to reinvest in new projects that have an expected retum of 15.65 per year. Suppose DFB wil maintain the same dividend payout rate, retention rate, and retum on new investments in the future and will not change is number of outstanding shares. Assume next dividend is due in one year a. What growth rate of earnings would you forecast for DFB? D. I DFB's equity cost of capital is 114%, what price would you estimate DFB stock? 6. Suppose and at OFB paid a dividend of 54.10 per share at the end of this year and retained only $0.85 per share in camings. That is, it chose to pay a higher dividend instead of reinvesting in as many new projects. DFB maintains this higher payout rate in the future, what stock price would you estimate for the fim now? Should DFB raise is dividend? a. What growth rate of earnings would you forecast for DFB7 DFB's growth rate of earnings is Round to one decimal place) B.OFB's equity cost of capital is 114%, what price would you estimate for DFB stock? OFB's equity cost of capital is 11.4%, the DFB's stock price will be s Round to the nearest cert) . Suppose instead that CFB paid a dividend of $4.10 per share at the end of this year and retained only $0.85 per share in earrings. That is, it chose to pay a higher dividend instead of reinvesting in as many new projects. HDFB maintains this higher payout rate in the future, what stock price would you estimate for the firm now? FDFB paid a dividend of $4.10 per share next year and retained only $0.85 per share in earnings, ten DFB's stock price would be (Round to the newest cent) Should DFB raise its dividend? (Select the best choice below) OA. Yes. DFB should raise dividends because according to the dividend discount model, doing so willways improve the share price OB. No, DFB should not raise dividends because the projects we positive NPV OC. No. DFB should not rase dividends because companies should always reinvest as much as possibile OD. Yes DFB should raise dividends because them on new investments is lower than the cost of capital