Eastman Kodak was, in the view of many observers, in serious need of restructuring in 1994. In 1993, the firm reported the following: Net Income = $1,080 million Interest Expense = $ 550 million The firm also had the following estimates of debt and equity in the balance sheet: Equity (Book Value) = $6,000 million ROE 1080 Debt (Book Value) = $6,880 million gees = Retention Ratio Tr000 = 0.18 The firm also paid out total dividends of $660 million in 1993. The stock was trading at $63, and there were 330 million shares outstanding. (It faced a corporate tax rate of 40%.) Eastman Kodak had a beta of 1.10. Analysts believe that Kodak could take the following restructuring actions to improve its financial strength: It could sell its chemical division (at a market value of 2.5b), which has a total book value of assets of $2,500 million and has only $100 million in earnings before interest and taxes. It could use the cash from the sale of chemical division to pay down debt and improve its bond rating (leading to a decline in the interest rate to 7%). It could reduce the dividend payout ratio to 50% and reinvest more back into the business. A. What is the expected growth rate in earnings, assuming that 1993 numbers remain unchanged? B. What is the expected growth rate in earnings, if the restructuring plan described above is put into effect