Monarch Bank is considering a change in dividend policy. They pay an annual dividend of $3.60. The company has been experiencing growth of 4% and has a cost of capital of 14%. a. Find the price of a share. b. With the American tax cut and looser financial regulations they feel that they can increase their dividend to $4. Growth will increase from 4% to 6%. Find the new price of a share. 1. Under the scenario above they would have earnings per share of $8.00. 1. What is their payout ratio. 2. What is the price earnings ratio