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Computer stocks currently provide an expected rate of return of 1 5 % . MBI, a large computer company, will pay a year - end

Computer stocks currently provide an expected rate of return of 15%. MBI, a large computer 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 growth rate of MBI dividends? (Do not round intermediate calculations. Round your answer to 2 decimal places.)
b. If dividend growth forecasts for MBI are revised downward to 5% per year, what will be the price of the MBI stock? (Round your answer to 2 decimal places.)

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