$2)$ Analysts expect MC$,$ Co$.$ to maintain a dividend payout ratio of $35\%$ and enjoy an expected growth rate of $12\%$ per year for the next $5$ years. After the fifth year, all earnings will be paid out as dividends. The required rate of return on MC$,$ Co equity is $8\%.$

a$.$ Given that the last dividend paid was $$0\mathrm{.}5$ and the current market price of the stock is $$15,$ what growth rate does the market expect for MC$,$ Co$?$

b$.$ At what price would the analysts value the stock under their own expectations?

c$.$ Suppose $5$ years have gone by and the company has to make a decision on how to move forward. It can either pay out all earnings as dividends without considering any growth opportunities or choose a growth strategy where the company will expand into new lines of business in global markets. If the management chooses this strategy, the payout ratio will be reduced to $20\%$ from $35\%,$ and the company will be able to maintain a growth rate of $7\%$ forever. Which strategy should the management choose to maximize shareholder value?