Eastern Electric currently pays a dividend of about $1.71 per share and sells for $34 a share.

a.If investors believe the growth rate of dividends is 4% per year, what rate of return do they expect to earn on the stock?(Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)

b.If investors' required rate of return is 10%, what must be the growth rate they expect of the firm?(Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)

c.If the sustainable growth rate is 3% and the plowback ratio is 0.6, what must be the rate of return earned by the firm on its new investments?(Enter your answer as a percent rounded to 2 decimal places.)