Question 6( 8 marks) Dubal Inc. expects to earn $40 per share this year and intends to pay out $16 in dividends to shareholders and retain $24 to invest in new projects with an expected return on equlty of 40 percent In the future, Dubal Inc. expects to maintain the same dividend payout ratio, expects to earn a 40 percent return on its equity invested in new projects, and will not be changing the number of shares of common stock outstanding. Instructions: a. Calculate the future growth rate for Dubal Inc. earnings. ( 2 Marks) b. If the investor's required rate of return for Dubal's stock is 30 percent, what is the price of common stock?. (2 marks) c. What would happen to the price of Dubal common stock if it raised its dividends to $24 this year and then continued with that same dividend payout ratio permanently? ( 2 Marks) Should Dubal make this change? (Assume that the investor's required rate of return remains at 30 percent.). ( 2 Marks) d) Conclude all the answer and fill the following table for the three options D TO b ROE res Ves 1 2