Stock XYZ trades for $30, has current earnings of $5, current dividends of $2, and a beta of 1.2. The risk-free rate is 6% and the market risk premium is 5%. a. What is XYZ's plow-back ratio? b. Using the Gordon Growth Model, what growth rate is implied by the current valuation of XYZ? c. Your own analysis shows that XYZ's growth rate will be 8%. If tomorrow all investors come to share your view and XYZ's stock price adjusts accordingly, what will be the holding period return (HPR) to buying a share of XYZ today and selling it tomorrow? (No dividends are due over this period.)