Problem 10 Intro Boston Bakery's current dividend policy is to pay out 80% of earnings as dividends. It just paid an annual dividend of $2.54 per share, and dividends are expected to grow by 2% per year. The required rate of return is 15%. Part 1 18 Attempt 3/10 for 10 pts. What is the value of the stock? 1+ decimals Submit Attempt 2/10 for 10 pts. Part 2 The company is now considering changing its dividend policy and reinvesting 80% of its earnings for faster growth in the future. Under the new policy, the company expects dividends to grow by 8% per year. However, reinvesting more funds implies paying out less to shareholders, so the last dividend would have been only $0.64 under the new policy. What is the value of the stock under the new policy? 1+ decimals Submit