Eastern Electric's recent annual dividend was $1.64 per share and its stock currently sells for about $27 per share. (Round your answers to 2 decimal places.)

a. If investors believe the growth rate of dividends is 3% per year, what rate of return do they expect to earn on the stock?

Rate of return %

b. If investors' required rate of return is 10%, what must be the growth rate they expect of the firm?

Rate of return %

c. If the sustainable growth rate is 5% and the plowback ratio is .4, what must be the rate of return earned by the firm on its new investments?

Rate of return %