The stock of Nogro Corporation is currently selling for $30 per share. Earnings per share in the coming year are expected to be $6. 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. a. 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? (Do not round intermediate calculations.) Rate of return % b. By how much does its value exceed what it would be if all earnings were paid as dividends and nothing were reinvested? PVGO $ c-1. If Nogro were to cut its dividend payout ratio to 25%, what would happen to its stock price? Stock price would be decreased Stock price would be unaffected Stock price would be increased c-2. If Nogro eliminated the dividend, what would happen to its stock price? Stock price would be unaffected Stock price would be increased Stock price would be decreased