nitistanding thares Actume next dyidend is toen in ton yeal a. What growth rate of eamings would you forecast for DFE? DFB's growth rele of earnings is 5 (Round to one decimal place) b. If DFB's equity cost of capital is 11.5%, what price would you estimate for DFB stock today? II DFB's equaty cost of capital is 115%, then DFB's stock pnce will be 5 (Round to the noarest cent) c. Suppose instead that DFB paid a dividend of $3.37 per share at the end of this year and retained only $135 per share in earnings. That is. it chose to pay a higher dividend instead of new projects if DFB mantains thes higher payout rate in the future, what stock price would you estimate for the firm now? It DFB paid a dividend of $337 per share next yeat and rotaned only $1.35 per shate in earnings, then DFB's stock pnce would be $ (Round to the nearest cent) Should DFB raise its dindend? (5elect the best choice below) A. Yes, DFa should tarse dividends because the return on new itviestinents is lower than the cost of capital B. Yos, DFB stould rarse dividends because, accorsing to the dividend discount modet, doing so will atways enprove the shate phce C. No, DF should not rase dividends because companes should always ieinvest as much as poss ble D. No, Df B should not iase diviends because the projects are positive NPV