Eastern Electric currently pays a dividen of about $1.64 per share and
sells for $27 a share.
a. If investors believe the frowth rate of dividends is 3 percent per
year, what rate of return do they expect to earn on the stock?
b. If the investor's required rate of return is 10 percent, what must
be the frowth rate they expect of the firm?
c. If the sustainable growth rate is 5 percent, and the plowback ratio
is .4, what must be the rate of return earned by the firm on its new
investments?

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Clarification of Question by msgirl-ga on 12 Feb 2006 17:58 PST

I need this answer ASAP.  Due in by 2/13/06. Thanks.