Question 1: (5 marks) ABC Corp has invested in projects with an ROE of 15% and expects an EPS of $5 next year. The company maintains a 60% dividend ratio and the share price is currently $50. After a high level meeting, the company decides to change its dividend policy and invest in new projects with an ROE of 40%. As a result of implementing these decisions, the company's share price jumps to $100. Assuming that there has been no change in the EPS and the rate of return expected by investors remains the same, what is the new dividend ratio