Problem 7-17 Constant-Growth Model (L03) Eastern Electric currently pays a dividend of about $1.78 per share and sells for $36 a share, a. If Investors believe the growth rate of dividends is 3% per year, what rate of return do they expect to earn on the stock? (Do not round Intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) Rate of return b. If investors' required rate of return is 12%, what must be the growth rate they expect of the firm? (Do not round Intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) Growth rate c. If the sustainable growth rate is 5% and the plowback ratio is 0.4, what must be the rate of return earned by the firm on its new Investments? (Enter your answer as a percent rounded to 2 decimal places.) Rate of retum