The dividends and earnings of Kalufyanya Chiti Plc over the last five years have been as follows: Year Dividends Earnings K K 20X1 150,000 400,000 20X2 192,000 510,000 20X3 206,000 550,000 20X4 245,000 650,000 20X5 262,350 700,000 The company is financed entirely by equity and there are 1,000,000 shares in issue, each with a market value of K3.35 ex div. (a) What is the growth rate over the last four years? (b) What is the cost of equity? (c) What implication does dividend growth appear to have for earnings retentions