Eastern Electric currently pays a dividend of about $1.82 per share and sells for $28 a share. a. If investors believe the growth rate of dividends is 2% 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 10%, 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 1% and the plowback ratio is.

1. 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 return %  rev: 12_16_2015_CS-36184

2)  No-Growth Industries pays out all of its earnings as dividends. It will pay its next $4 per share dividend in a year. The discount rate is 21%.

a. What is the price-earnings ratio of the company? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

P/E ratio

b. What would the P/E ratio be if the discount rate were 5%? (Round your answer to 2 decimal places.)

P/E ratio