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Horse and Buggy Inc. is in a declining industry. Sales, earnings, and dividends are all shrinking at a rate of 10% per year. a. If

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Horse and Buggy Inc. is in a declining industry. Sales, earnings, and dividends are all shrinking at a rate of 10% per year. a. If r= 15% and DIV, = $2, what is the value of a share? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Value of a share $ 12.12 b. If r= 15% and DIV1 = $2, What price do you forecast for the stock next year? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Stock price 10.90 c. If r= 15% and DIV1 = $2, What rate of return should you expect if you buy stock and sell it in one year? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) Expected rate of return %

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