you believe that the dividend growth model is appropriate to value the stock of a corporation. the company had an EPS of $2 in 2021. the dividend payout ratio is 0.40. the company is expected to earn an ROE of 14% on its investments and the required rate of return is 11%. assume that all dividends are paid at the end of the year.

a) calculate the company's sustainable growth rate.

b) estimate the value of the company's stock at the beginning of 2022.