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$\text{'}$s equity cost of capital is $12\mathrm{.}0\%,$ what price would you estimate for DFB stock today? 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$\text{'}$s growth rate of earnings is $\%.($Round to one decimal place.$)$