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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 MBI, a large computer company, will pay a yearend dividend of $ per share. If the stock is selling at $ 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 decimal places.
b If dividend growth forecasts for MBI are revised downward to per year, what will be the price of the MBI stock? Round your answer to decimal places.
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