ces Horse and Buggy Incorporated is in a declining industry. Sales, earnings, and dividends are all shrinking at a rate of 10% per year. a. If r= 15% and DIV = = $8, what is the value of a share? Note: Do not round intermediate calculations. Round your answer to 2 decimal places. Value of a share b. What price do you forecast for the stock next year? Note: Do not round intermediate calculations. Round your answer to 2 decimal places. Stock price $ $ 32.00 Expected rate of return 29.00 c. What is the expected rate of return on the stock? Note: Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places. %

Horse and Buggy incorporated is in a declining industry. Sales, earnings, and dividends are all shrinking at a rate of 10% per year. a. If r=15% and DIV1=$8, what is the value of a share? Note: Do not round intermediate calculations. Round your answer to 2 decimal places. b. What price do you forecast for the stock next year? Note: Do not round intermediate calculations. Round your answer to 2 decimal places. c. What is the expected rate of return on the stock? Note: Do not round intermediate colculations. Enter your answer as a percent rounded to 2 decimal ploces