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

a.Ifr= 15% and DIV₁= $3, what is the value of a share?(Do not round intermediate calculations. Round your answer to 2 decimal places.)

value of Share?

b.What price do you forecast for the stock next year?(Do not round intermediate calculations. Round your answer to 2 decimal places.)

Stock Price?

c.Whatrate of return should you expect if you buy the stock today 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?