The stock of Nogro Corporation is currently selling for $40 per share. Eamings per share in the coming year are expected to be $6. The company has a poliay of paying out 40% of its earnings each year i, dvidends. The rest is retained and invested i, proncts that earn a 15% rate of return yer. This station is epected tocontinue indefinitely a. Assuming the current market price of the stock reflects its Intrinsie value as computed using the constant-grown boM, what rate af return do Nogro's Investors require? Da not round intermediate calculations) Rate of retum 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 toits stock price? O Stock price would be increased O Stock price would be decreased Stock price would be unaflected c-2. If Nogro eliminated the dividend, what would happen to its stock price? O Stock price would be unaflected O Stock price would be inoreased Stock price would be decreased