?(Measuring growth) a. b. c. d. a. ?% ??Round to two decimal??laces.)Solarpower Systems earned ?$20 per share at the beginning of the year and paid out ?$10 in dividends to shareholders??so, D0=$10?) and retained ?$10 to invest in new projects with an expected return on equity of 21 percent.In the??uture, Solarpower expects to retain the same dividend payout??atio, expects to earn a return of 21 percent on its equity invested in new??rojects, and will not be changing the number of shares of common stock outstanding.Calculate the future growth rate for??olarpower’s earnings.If the??nvestor’s required rate of return for??olarpower’s stock is 14 percent?, what would be the price of??olarpower’s common??tock?What would happen to the price of??olarpower’s common stock if it raised its dividends to ?$13 and then continued with that same dividend payout ratio??ermanently?Should Solarpower make this??hange? ??Assume that the??nvestor’s required rate of return remains at 14 percent?.)What would happened to the price of??olarpower’s common stock if it lowered its dividends to ?$2 and then continued with that same dividend payout ratio??ermanently?Does the constant dividend growth rate model work in this??ase?Why or why??ot? ??Assume that the??nvestor’s required rate of return remains at 14 percent and that all future new projects will earn 21 ?percent.)What is the future growth rate for??olarpower’s earnings? nothingBusinessFinanceFINANCE MT217
