Problem 2 (12p) The Shamrock Dogfood Company (SDC) has consistently paid out 40% of its earnings in dividends. (a) The company's return on equity is 16%.What would you estimate as its dividend growth rate? (b) Given the low risk in dog food, your required return on SDC is 13%.What P/E ratio would you apply to the firm's earnings? (c) What P/E ratio would you apply if you learned that SDC had decided to increase its payout to 50%? (Hint: This change in payout has multiple effects.)