Question: Can someone please answer C D E? I really don't get it! Thanks so much! Q1. You are the CEO of a technology company. You
Can someone please answer C D E? I really don't get it!
Thanks so much!

Q1. You are the CEO of a technology company. You want to increase the firm's stock price as much as possible. a) You have convinced the stock analysts that your company has extremely profitable investment opportunities, but you know that this is not the case. You would like to keep the firm's stock price up at least until you retire so that you can sell your shares profitably. Should you pay earnings out to shareholders or retain them? b) Are your actions in part (a) in the long-run interests of shareholders? Now suppose the stock of Nogro Corporation is currently selling for $10 per share. Earnings per share in the coming year are expected to be $2. The company has a policy of paying out 50% of its earnings each year in dividends. The rest is retained and invested in projects that earn a 20% rate of return per year. This situation is expected to continue indefinitely. c) Assuming the current market price of the stock reflects its intrinsic value as computed using the d) By how much does its value exceed what it would be if all earnings were paid as dividends and e) If Nogro were to cut its dividend payout ratio to 25%, what would happen to its stock price? constant-growth DDM (GGM), what rate of return do Nogro's investors require? nothing were reinvested? What if Nogro eliminated the dividend
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