Iron Crown Enterprises (ICE) is expected to earn $10 per share at the end of 2021. It has also committed to paying 60% of that amount as dividends at that time. The rest will be retained for investment into a project expected to generate a return of 15% per year. Assume that ICEs current equity cost of capital is 12%.

1. Find the growth rate of ICEs earnings and the price of its stock.
2. How would those change if ICE raised its dividend payout rate to 80%? Would you recommend that move?