Please show all relevant calculations to arrive at answers "A" and "D" respectively.

stockholders of Dogs R Pet Supply expect a 12%rate ofreturn on their stock. Management has consistently of 15%. Given this, the firm's optimal dividend been generating an ROE payout ratio is B. 100% C. between 0% and 50% D. between 50% and 100% 10. Suppose that in 2012 the expected dividends of the stocks in a broad market index equaled S240 million when the discount rate was 8% and the expected growth rate of the dividends equaled 6%. Using the constant-growth formula for valuation, if interest rates increase to 9%, the value of the market will change by A. -10% B. -20% C. -25% D. 33%