Question
MBI, a large computer company, will pay a year-end dividend of $1 per share. A). If the stock is selling at $50 per share, and
MBI, a large computer company, will pay a year-end dividend of $1 per share.
A). If the stock is selling at $50 per share, and the expected return is 14%, what must be the market's expectation of the growth rate of MBI dividends? Please Show Work.
B). If growth is revised down to 4% per year, what is the new (current) price?
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Forecasting Methods And Applications
Authors: Spyros G. Makridakis, Steven C. Wheelwright, Rob J Hyndman
3rd Edition
0471532339, 9780471532330
