LTX Ltd expects earnings this year of $5.76 per share, and it plans to pay a $3.66 dividend to shareholders. LTX will retain $2.1 per share of its earnings to reinvest in new projects which have an expected return of 15.2% per year. Suppose LTX will maintain the same dividend payout rate, retention rate and return on new investments in the future and will not change its number of outstanding shares. (a) LTX's growth rate of earnings is 5.5417 (Round your answer to four decimal places) Your last answer was interpreted as follows: 5.5417 (b) If LTX's equity cost of capital is 12.8%, then LTX's share price will be $50.00 (Round your answer to the nearest cent) Your last answer was interpreted as follows: 50.00 (c) If LTX paid a dividend of $4.18 per share this year and retained only $1.58 per share in earnings. That is, it chose to pay a higher dividend instead of reinvesting its profits in as many new projects as it was going to under its original plan. If LTX maintains this new, higher payout rate in the future, then LTX's share price would be $ 27.4306 (Round your answer to the nearest cent) Your last answer was interpreted as follows: 27.4306 Should LTX follow this new policy? (Select the best choice below) O(No answer given) ONO, LTX should not raise dividends because companies should always reinvest as much as possible. OYes, LTX should raise dividends because, according to the dividend-discount model, doing so will always improve the share price. ONO, LTX should not raise dividends because the projects are positive NPV. Yes, LTX should raise dividends because the return on new investments is lower than the cost of capital