The stock of WishToGrow Corporation is currently selling for $15 per share. Earnings per share in the coming year are expected to be $3. The company has a policy of paying out 70% of its earnings each year in dividends. The remaining 30% is retained and invested in projects that earn a 19% rate of return each year. This situation is expected to continue into the foreseeable future.

1. Using the constant growth rate DDM, what rate of return do WannaGrow investors require?
2. By how much does its value exceed what it would be if all earnings were paid as dividends and nothing were reinvested?
3. If WannaGrow were to cut its dividend payout ratio to 35%, what would happen to its stock price?