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Computer stocks currently provide an expected rate of return of 24%. MBI, a large computer company, will pay a year-end dividend of $3.60 per share.

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Computer stocks currently provide an expected rate of return of 24%. MBI, a large computer company, will pay a year-end dividend of $3.60 per share. If the stock is selling at $66 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.) If dividend growth forecasts for MBI are revised downward to 11 % per year, what will happen to the price of MBI stock? What (qualitatively) will happen to the company's price-earnings ratio

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