Pigeon Express currently plows back 40% of its earnings and earns a return of 20% on investment. The dividend yield on the stock is 4%. a. Assuming that Pigeon can continue to plow back this proportion of earnings and earn a 20% return on the investment, how rapidly will earnings and dividends grow? What is the expected return on Pigeon stock? b. Suppose management suddenly announces that future investment opportunities have vanished. Now pigeon intends to pay out all its earnings. How will the stock price change? (Hint: you will not be able to solve for all of the variables in the formulas, but instead will be solving for a ratio of two variables.) c. Suppose that management instead announces that the expected return on new investment in the future will be equal to the market capitalization rate. How would the stock price react