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17. a. Computer stocks currently prowide an expected rate of resurn of 16%. MBI, a large compater company, will pay a year-end dividend of $2
17. a. Computer stocks currently prowide an expected rate of resurn of 16%. MBI, a large compater company, will pay a year-end dividend of $2 per share. If the stock is selling at $50 per share, what must be the market's expectation of the grow th rate of MBI dividends? b. If dividend growth forecasts for MBI are revised donswand to 5% per year, what will happen to the price of MBI stock? c. What (qualitatively) will happen to the company's price-carnings ratio? (
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