what rate will the firm be able to grow the dividend, and what will be the value of the firm? Compare your answer to this question to your answer for question #9.

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Now suppose the firm in question #9 has a payout ratio of 30 percent. Given the earnings retention, what will be next year’s dividend, at what rate will the firm be able to grow the dividend, and what will be the value of the firm? Compare your answer to this question to your answer for question #9.