Twinkle Star Enterprises - has a share price today of $49.46. - As a matter of policy, the firm pays out 38.0% of its earnings eachyear as dividends and reinvests the remaining 62.0% into new projects. - It expects to generate anntal earnings of $6.9 per share (i.e. at ta1 1. - New projects can expect to a return on new imvestment of 14.6% per annum. However, due to a changes in consumer tastes tor its current product line, Twinkle Star Enterprises - will announce tomorrow a pay out policy of 63,0% of iss earnings as dividends, - retaining now 37.0% for investment in new projects. - The return on investment on new projects will remain at 14.6% per annam for the foreseeable future. 1. What is the cost af equity priae to the change in dividend policy? The cost of equity for Twinkle Star Enterprises F (Give your as a percentage to 4 decimal piaces) 2. What will be the share peice after this announcement? investors are not expecting the firm to change its payout pelicy- The share price for. Twinkle Star Enterprises after this announcement will be 3 (Round your answer to the neareat cent)