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

$$3\mathrm{.}50$ per share.

Required:

a$.$ If the stock is selling at $$65$ per share, what must be the market's expectation of the dividend growth rate?

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

b$.$ If dividend growth forecasts for MBI are revised downward to $11\%$ per year, what will happen to the price of MBI stock?

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