Rubenstein Bros. Clothing is expecting to pay an annual dividend per share of $1.15 out of annual earnings per share of $2.75. Currently, Rubenstein Bros.' stock is selling for $21.50 per share. Adhering to the company's target capital structure, the firm has $10 million in total invested capital, of which 55% is funded by debt. Assume that the firm's book value of equity equals its market value. In past years, the firm has earned a return on equity (ROE) of 13%, which is expected to continue this year and into the foreseeable future. Based on this information, what long-run growth rate can the firm be expected to maintain?

Suppose instead that the firm has decided to proceed with its original plan of disbursing $1.15 per share to shareholders, but the firm intends to do so in the form of a stock dividend rather than a cash dividend. The firm will allot new shares based on the current stock price of $21.50. In other words, for every $21.50 in dividends due to shareholders, a share of stock will be issued. How large will the stock dividend be relative to the firm's current market capitalization? (Hint: Remember market capitalization = P0 number of shares outstanding.) Do not round intermediate calculations. Round your answer to two decimal places.

If the plan in part d is implemented, how many new shares of stock will be issued? Do not round intermediate calculations. Round your answer to the nearest whole number.

If the plan in part d is implemented, by how much will the company's earnings per share be diluted? Do not round intermediate calculations. Round your answer to the nearest cent. $ per share