Part 1 of 4 Points: 0 of 1 Save DFB, Inc., expects earnings this year of 34 84 per share, and it plans to pay a $250 dividend to shareholders DFB will retain $2.34 per share of its earnings to reinvest in new projects with an expected return of 14.1% per year Suppose DFB 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. What growth rate of earnings would you forecast for DFB? b. If DFB's equity cost of capital is 11.6%, what price would you estimate for DFB stock? c. Suppose DFB instead paid a dividend of $3,60 per share this year and retained only 51 34 per share in eamings. That is, it a. What growth rate of earnings would you forecast for DFB? Earnings growth rate will be % (Round to two decimal places.) Got moro holn DFB, Inc. expects earnings this year of 84 84 per share, and it plans to pay a $2.50 dividend to shareholders DFB will retain 32 34 per share of its earnings to reinvest in new projects wahan expected return of 14.1% per year. Suppose DFB 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. What growth rate of eamings would you forecast for DFB? b. If DFB's equity cost of capital is 116%, what price would you estimate for DFB stock? c. Suppose DFB instead paid a dividend of $350 per share this year and retained only $1.34 per share in earnings. That is it chose to pay a higher dividend instead or reinvesting in as many new projects I DFB maintains this higher payout rate in the future, what stock price would you estimate now? Shouk DFB follow this new policy? a. What growth rate of earnings would you forecast for DFB? Earnings growth rate will be > (Round to two decimal places.)