Question: please ans all parts. the second one is a simple one that i already posted but the expert got it wrong.. id appreciate it but

please ans all parts. the second one is a simple one that i already posted but the "expert" got it wrong.. id appreciate it but understand if you wont
 please ans all parts. the second one is a simple one
that i already posted but the "expert" got it wrong.. id appreciate

DFB, Inc, expects earnings next year of $4.41 per share, and it plans to pay a $2.02 dividend to shareholders (assume that is one year from now). DFB will retain $2.39 per share of its earnings to reinvest in new projects that have an expected return of 15.7% per year. Suppose DFB will maintain the same dividend payout rate, retention rate, and return on new investments in the future and will not change its number of outstanding shares. Assume next dividend is due in one year. a. What growth rate of earnings would you forecast for DFB? b. If DFB's equity cost of capital is 12.8%, what price would you estimate for DFB stock today? c. Suppose instead that DFB paid a dividend of $3.02 per share at the end of this year and retained only $1.39 per share in earnings. That is, it chose to pay a higher dividend instead of reinvesting in as many new projects. If DFB maintains this higher payout rate in the future, what stock price would you estimate for the firm now? Should DFB raise its dividend? a. What growth rate of earnings would you forecast for DFB? DFB's growth rate of earnings is %. (Round to one decimal place.) Assume Gillette Corporation will pay an annual dividend of $0.62 one year from now. Analysts expect this dividend to grow at 12.1% per year thereafter until the 6 th year. Thereafter, growth will level off at 1.9% per year. According to the dividend-discount model, what is the value of a share of Gillette stock if the firm's equity cost of capital is 7.1% ? The value of Gillette's stock is \$ (Round to the nearest cent.)

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