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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

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= $6, what is the price of a share?(Do not round intermediate calculations.)

Price of a share$

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

Stock price$

c.What is the cost of capital on the stock?(Do not round intermediate calculations.)

Cost of capital%

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