Computer stocks currently provide an expected rate of return of $22\%.$ MBI, a large computer company, will pay a year$-$end dividend of $$3\mathrm{.}10$ per share.

Required:

If the stock is selling at $$61$ per share, what must be the market's expectation of the dividend growth rate?

Note: Round your answer to $2$ decimal places.

If dividend growth forecasts for MBI are revised downward to $10\%$ per year, what will happen to the price of MBI stock?

What $($qualitatively$)$ will happen to the company's price$$earnings ratio?