Eastern Electric currently pays a dividend of about $1.82 per share and sells for $28 a share.

a. If investors believe the growth rate of dividends is 2% per year, what is the opportunity cost of capital? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

b. If investors' opportunity cost of capital is 10%, what must be the growth rate they expect of the firm? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

c. If the sustainable growth rate is 1% and the plowback ratio is .1, what must be the return on equity ROE? (Round your answer to 2 decimal places.)