Question
Computer stocks currently provide an expected rate of return of 18%. MBI, a large computer company, will pay a year-end dividend of $2.30 per share.
| Computer stocks currently provide an expected rate of return of 18%. MBI, a large computer company, will pay a year-end dividend of $2.30 per share. |
| a. | If the stock is selling at $53 per share, what must be the market's expectation of the growth rate of MBI dividends? (Do not round intermediate calculations. Round your answer to 2 decimal places. Omit the "%" sign in your response.) |
| Growth rate | % |
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The Handbook Of Mortgage Backed Securities
Authors: Frank Fabozzi
6th Edition
0071460748, 978-0071460743
