Rubenstein Bros. Oothing is expecting to pay an annual dividend per share of 50.00 out of annual earnings per share of $4.00. Currentiy, Rubenstein Bres' stock is selling for $29.50 per share Adhering to the compony's target captal structure, the firm has $8 milion in total imvested capkal, of which 35% is funded by debt. Assume that the firm's book value of equity equals iss 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 Nture. a. Based on this information, whot long-run growth rate can the firm be expected to maintain? (Hint: g = Retention rote x RoE.) Do not round intermediate caloulations, Round your answer to two decimal places. b. What is the stocks required return? Da not round intermediate calculations. Round your ansier to two decimal places. C. If the firm changed its oividend policy and paid an annual dividend of $1.60 per share, financal analysts would predict that the change in policy wal have no effect an the firm's stock arice or ROE. Therefore, what must the firm's new expected long run growth rate? Do not round intermediate calculabions. Round your answer to two decimal places. Ir this plan is implemented, what must the firm's requed return be? Do nok round intermediate calculations. Round your answer to two decimal places. d. Suppose instead thut the firm has decided to proceed with its original plan af disbursing 10.8 per share to shareholders, but the firm intends to do so in the form of a stock dividend rather than a cash dividend. The firm wif allot new shares based on the current stock price of 52.5 .50 . In other words, for every 529.50 in dividends due to sharehelders, a share of outstanding.) Do not round intermedate calculations. Hound pour answer to two deomal places. 6. If the plan in part o is inplemented, how many new vhaces of stock wil be issued? bo not round intermediate calculations. pound your answer to the nearest whole number shares. 1 per share