H&H Company has earnings of $12.00 per share in 2019. It has decided to distribute, as dividends,

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H&H Company has earnings of $12.00 per share in 2019. It has decided to distribute, as dividends, 40% of its earnings. Analysts forecast that H&H would earn a return on equity of 16% on its investments. If investors required a 11% rate of return,

1.1 Calculate the actual growth rate. What is the value of H&H at the end of 2019? Explain.

1.2. What fraction of H&H's value comes from growth opportunities?

1.3. Draw a table showing earnings per share, dividends, plowback, growth, and price for no growth and growth scenarios.

2. Suppose that H&H could only earn 6% on its investments and its payout ratio is now 80%,

2.1 Calculate the actual growth rate. What is the value of H&H at the end of 2019?

2.2. What fraction of H&H's value comes from growth opportunities?

2.3. Draw a table showing EPS, dividends, plowback, growth, and price for no growth and growth scenarios.

3. Based on the results obtained, provide a discussion on the relationship between the firm's equity value and its reinvestment policy.