In general, how is a firm$$s growth rate in earnings affected by its dividend policy? What does this imply about Georgia Atlantic$$s historical rate of return on investment vis$--$vis that of the average lumber company? $($Hint: Consider the retention growth model, g $=$ br$,$ where g $=$growth rate in EPS, b $=$ retention ratio, and r $=$ return on equity.

$4.$ Evaluate the family$$s argument that higher$-$priced stocks are more attractive to investors because the percentage transactions costs on such issues are lower. Is this a valid argument? Do you think Georgia Atlantic$$s current per$-$share price is $$optimal$$ in the sense that the value of the shares to investors is maximized?