You expect a stock to pay a $2.50 dividend next year. The dividend then increases at a rate of g per year indefinitely. Assume the Gordon Growth Model holds. Which of the following statements is correct?

a. If the expected return for investing in the stock is twice as high as the dividend growth rate and the firm retains half of its earnings, then the current stock price must be $50.

b. Holding everything else constant doubling the expected return for investing in the stock always reduces the stock price by 50%.

c. If the stock price is $50, the payout ratio is 50%, and the firms ROE is 10%, then the expected return for investing in the stock is twice as high as the dividend growth rate.

d. If the stock price is $50, the expected return for investing in the stock is 9%, and the firms payout ratio is equal to the firms ROE, then the ROE must be 20%.