You expect that Bean Enterprises will have earnings per share of $2 for the coming year. Bean plans to retain all of its earnings next year. In the subsequent year, the firm plans on retaining 50% of its earnings. It will then retain only 25% of its earnings from that point forward. Retained earnings will be invested in projects with an expected return of 20% per year. If Beans equity cost of capital is 10%, at what price would you expect Beans stock to trade at today?

a. What is the dividend payout ratio in year 3? %

b. What is the growth rate in year 4? %

c. If you assume at the end of year 3 the stock price is $40.50, what is the dividend yield at that point?

((round to one decimal, in % terms) )