Rubenstein Bros. Clothing is expecting to pay an annual dividend per share of $1.45 out of annual earnings per share of $3.50. Currently, Rubenstein Bros.' stock is selling for $15.00 per share. Adhering to the company's target capital structure, the firm has $15 million in total invested capital, of which 45% is funded by debt. Assume that the firm's book value of equity equals its market value. In past years, the firm has earned a return on equity (ROE) of 12%, which is expected to continue this year and into the foreseeable future. a. Based on this information, what long-run growth rate can the firm be expected to maintain? (Hint: g = Retention rate ROE.) Do not round intermediate calculations. Round your answer to two decimal places. % b. What is the stock's required return? Do not round intermediate calculations. Round your answer to two decimal places. % c. If the firm changed its dividend policy and paid an annual dividend of $2.90 per share, financial analysts would predict that the change in policy will have no effect on the firm's stock price or ROE. Therefore, what must the firm's new expected long- run growth rate? Do not round intermediate calculations. Round your answer to two decimal places. % If this plan is implemented, what must the firm's required return be? Do not round intermediate calculations. Round your answer to two decimal places. %