Mensuring growth Salaraer Systems Aarned S27 per here at the beginning of the year and fall out Sanderd to shareholders (80,00 = $81 and retained $120 was in now projects with an exced return on equilty of 19 percent. In the future, Sclarower expect to retain the same civitand ayout ralis, expect to eam a retum of 15 percent on its equity weeted in new projects, and wil not be charging the number of shares of common slock outstanding. a. Cakuna thonulure growth rate for Schernover's eamings b. If the investor's required rate of return for Bolarponer lock le 15 percent, what would be the price of solar power's common stock? c. What would happen to the price of Solar power's common stock if il raised its cividends to S14 and the continued with the same dividend payout ralio permererilly? Should Solarpower cake this change? (Assume that the investur's required rate of relum reruins al 15 percent) d. What would happened to the price of Solarpower's common stock if it lowered its dividends to $3 and then continue with that same dividend payout rabic permanenty? Does the constant dividend growth rate model work in this case? Why or why not? Acume that the investor's recured rate of return remains at 15 percent and that al hune new projects will cam 19 persent.) a. What is the future gravih rate for Solarpace's carmings? X (Round to two decime placea) b. If the investor's required rate of return for Salarporace's stocks 15%, what would be the price of Solarprer's common slock? 3 Round to the nearest cont.) c. What would happen to the price of 50 a power's common stock if it had raised il dividends to $14 Oc=514) and then continued with that same divicend payout ratio permanently? $7 Round to the nearest art.) Should Sclerave made this change? Select from the dran-dran manus. Sola power rase its dividend because the retentior ratia will and the value of the common stock wil d. What would happen to the price of Sulapur's curren luck had loncrecis vividends lo $100-$3) and lien cried with liat are divivered payout ralio permanen? $ Rourd to the nearest sont Dore the constant dividend growth rate model work in the case? Why or why not? (Select the best choice below) O A No, lle constant dividend growth rate model coes not work in this case where the required return on the stock is greater than the projected growth rate because it is not possible for a fimm to grow at such an unsustainable higher rate while the enviroment that houses it can only grow at a lower rate O B. Yes the constant dividend growth rate model works in this case where the required return on the stuck is less than the projecled growth rate because the fron's value will become negative wter the corrory that houses il experiences a substantial higher growth rate. OC. Yes the constant dividend growth rate model works in this case where the required return on the stack is grealer than the projected growth rate because the firm's value will become regalive when the curreny that houses il experiences a substantial lawer growth rate. OD. No, the constant dicend growth rate madel coes not work in this case where the required reluti on the stock is less than the projected growthrale because it is not possible for a firm to grow al such an unsustairable lower rale while the environment that houses it can only grow at a higher rale. Mensuring growth Salaraer Systems Aarned S27 per here at the beginning of the year and fall out Sanderd to shareholders (80,00 = $81 and retained $120 was in now projects with an exced return on equilty of 19 percent. In the future, Sclarower expect to retain the same civitand ayout ralis, expect to eam a retum of 15 percent on its equity weeted in new projects, and wil not be charging the number of shares of common slock outstanding. a. Cakuna thonulure growth rate for Schernover's eamings b. If the investor's required rate of return for Bolarponer lock le 15 percent, what would be the price of solar power's common stock? c. What would happen to the price of Solar power's common stock if il raised its cividends to S14 and the continued with the same dividend payout ralio permererilly? Should Solarpower cake this change? (Assume that the investur's required rate of relum reruins al 15 percent) d. What would happened to the price of Solarpower's common stock if it lowered its dividends to $3 and then continue with that same dividend payout rabic permanenty? Does the constant dividend growth rate model work in this case? Why or why not? Acume that the investor's recured rate of return remains at 15 percent and that al hune new projects will cam 19 persent.) a. What is the future gravih rate for Solarpace's carmings? X (Round to two decime placea) b. If the investor's required rate of return for Salarporace's stocks 15%, what would be the price of Solarprer's common slock? 3 Round to the nearest cont.) c. What would happen to the price of 50 a power's common stock if it had raised il dividends to $14 Oc=514) and then continued with that same divicend payout ratio permanently? $7 Round to the nearest art.) Should Sclerave made this change? Select from the dran-dran manus. Sola power rase its dividend because the retentior ratia will and the value of the common stock wil d. What would happen to the price of Sulapur's curren luck had loncrecis vividends lo $100-$3) and lien cried with liat are divivered payout ralio permanen? $ Rourd to the nearest sont Dore the constant dividend growth rate model work in the case? Why or why not? (Select the best choice below) O A No, lle constant dividend growth rate model coes not work in this case where the required return on the stock is greater than the projected growth rate because it is not possible for a fimm to grow at such an unsustainable higher rate while the enviroment that houses it can only grow at a lower rate O B. Yes the constant dividend growth rate model works in this case where the required return on the stuck is less than the projecled growth rate because the fron's value will become negative wter the corrory that houses il experiences a substantial higher growth rate. OC. Yes the constant dividend growth rate model works in this case where the required return on the stack is grealer than the projected growth rate because the firm's value will become regalive when the curreny that houses il experiences a substantial lawer growth rate. OD. No, the constant dicend growth rate madel coes not work in this case where the required reluti on the stock is less than the projected growthrale because it is not possible for a firm to grow al such an unsustairable lower rale while the environment that houses it can only grow at a higher rale