Required: a. Computer stocks currently provide an expected rate of return of 12%. MBI, a large computer company, will pay a year-end dividend of $1 per share. If the stock is selling at $50 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.) Growth rate % b. If dividend growth forecasts for MBI are revised downward to 4% per year, what will be the price of the MBI stock? (Round your answer to 2 decimal places.) Price c. What (qualitatively) will happen to the company's price-earnings ratio? The P/E ratio will decrease. The P/E ratio will increase.

Required: . Computer stocks currently provide an expected rate of return of 12%.MBl, a large computer company, will pay a year-end dividend of $1 per share. If the stock is selling at \$50 per share, what must be the market's expectation of the growth rate of MB) dividends? (Do not round intermediate calculations. Round your answer to 2 decimal places.) b. If dividend growth forecasts for MBt are revised downward to 4% per year, what will be the price of the MBI stock? (Round your answer to 2 decimal places.) c. What (qualitatively) will happen to the company's price-earnings ratio? The P/E ratio will decrease. The P/E ratio witt therease