Given that a firm's return on equity is 22 percent and management plans to retain 37 percent of earnings for investment purposes, a. Find the firm's growth rate. b. If the firm decides to increase its retention ratio, what will happen to the value of its common stock?

I need detailed explanation for the following question If a firm bases its growth projection on the rate of sustainable growth, shows positive net income, and has a dividend payout ratio of 30 percent, then the: A. fixed assets will have to increase at the same rate, even if the firm is currently operating at only 78 percent of capacity.B. number of common shares outstanding will increase at the same rate of growth.C. debt-equity ratio will have to increase.D. debt-equity ratio will remain constant while retained earnings increase.E. fixed assets, the debt-equity ratio, and number of common shares outstanding will all increase

a. Determine average annual dividend growth rate over the past 5 years. Using that growth rate, what dividend would you expect the company to pay next year? b. Determine the net proceeds, N, that the firm will actually receive. c. Using the constant-growth valuation model, determine the required return on the company's stock, rg, which should equal the cost of retained earnings, r,. d. Using the constant-growth valuation model, determine the cost of new common stock, r,.

​(Measuring growth)  Given that a​ firm's return on equity is 21 percent and management plans to retain 39 percent of earnings for investment​ purposes, what will be the​ firm's growth​ rate? If the firm decides to increase its retention​ rate, what will happen to the value of its common​ stock?       Question content area bottom Part 1 a.  The​ firm's growth rate will be enter your response here​%. ​(Round to two decimal​ places.) Part 2 b.  If the firm decides to increase its retention​ ratio, what will happen to the value of its common​ stock?  ​(Select from the​ drop-down menus.)   An increase in the retention rate will ▼   increase decrease the rate of growth in​ dividends, which in turn will ▼   increase decrease the value of the common stock.