You are trying to value the shares of Guilford, Inc. Guilford is expected to pay its first

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You are trying to value the shares of Guilford, Inc. Guilford is expected to pay its first ever dividend of $2 per share at the end of this year, 2022 (today is January 1, 2022). You expect Guilford to continue paying $2 per share for each of the following two years (2023 and 2024). In 2024, Guilford's expected EPS will be $2.50, so its $2 expected dividend that year represents an 80% payout ratio (POR). After 2024, you expect the company to continue to pay out 80% of its earnings every year while generating an ROE of 10%.

a. What is the expected long-term growth rate of dividends starting from 2025?

b. What is the value of a share of Guilford, Inc. stock today if its equity cost of capital is 15%?

c. If Guilford increased its payout ratio (POR) to 100% in 2024, and then maintained that payout ratio forever while earning an ROE of 10%, what would be the value of its shares today? Compare to your answer to part b above and explain.