Eastern Electric currently pays a dividend of $1.69 per share and sells for $24 a share.

a. If investors believe the growth rate of dividends is 2% per year, what rate of return do they expect to earn on the stock? 

 b. If investors' required rate of return is 12%, what must be the growth rate they expect of the firm?

 c. If the sustainable growth rate is 3% and the plowback ratio is 0.3 , what must be the rate of return earned by the firm on its new investments?