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6. Computer stock investors demand an expected rate of return of 21%. MBI, a large computer company, will pay a year-end dividend of $3.00 per

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6. Computer stock investors demand an expected rate of return of 21%. MBI, a large computer company, will pay a year-end dividend of $3.00 per share. (a) If the stock is selling at $60 per share, what must be the market's expectation of the growth rate of MBI dividends? (b) If dividend growth forecasts for MBI are revised downward to 8% per year, what will happen to the price of MBI stock? (c) What will happen to the company's price-earnings ratio

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