High-tech company expects to earn $25 per share at the end of the year and intends to pay out $15 in dividends to shareholders. The company's net income is 350 million and its common share equity is $1,400 million A) Compute the future growth rate. B) If the investors' required rate of return for High-tech's stock is 15 percent, estimate the company's common stock value. c) High-tech's finance director is considering a change in the dividend policy and continue with the same dividend payout ratio permanently. Before communicating the adequate revision in the dividend policy to the shareholders, he simulated two alternatives The first one is with a dividend equal to $20. . The second one is with a dividend equal to $12.5 Estimate what would happen to the stock value in both cases. Explain the relationship between dividend growth rate, and value of the stock. What do you recommend to the finance director? D) If the actual High-tech stock price is 450 for which dividend level you buy the stock