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Computer stocks currently provide an expected rate of return of 25%. MBI, a large computer company, will pay a year-end dividend of $3.70 per share.
| Computer stocks currently provide an expected rate of return of 25%. MBI, a large computer company, will pay a year-end dividend of $3.70 per share. |
| a. | If the stock is selling at $67 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.) |
| Growth rate | % |
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