The stock of Nogro Corporation is currently selling for $30 per share. Earnings per share in the coming year are expected to be $6.00. The company has a policy of paying out 50% of its earnings each year in dividends. The rest is retained and invested in projects that earn a 20% rate of return per year. This situation is expected to continue indefinitely.

Required:

Assuming the current market price of the stock reflects its intrinsic value as computed using the constant-growth DDM, what rate of return do Nogros investors require?

Note: Do not round intermediate calculations. Round your answer to 2 decimal places.

By how much does its value exceed what it would be if all earnings were paid as dividends and nothing were reinvested?

Note: Do not round intermediate calculations. Round your answer to 2 decimal places.

If Nogro were to cut its dividend payout ratio to 25%, what would happen to its stock price?

Note: Round your answer to 2 decimal places.

What would happen to its stock price if Nogro eliminated the dividend?

Note: Round your answer to 2 decimal places.