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Required: a. Computer stocks currently provide an expected rate of return of 12% MBL. a large computer company, will pay a yoar-end dividend of $1

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Required: a. Computer stocks currently provide an expected rate of return of 12% MBL. a large computer company, will pay a yoar-end dividend of $1 per share. If the stock is seliing at $50 per share, what must be the market's expectation of the growth rate of MBi dividends? (Do not round intermedlate calculations. Round your answer to 2 decimal places) b. If diviend growth forecasts for MBl are revised downward to 45 per year, what will be the price of the Mel stock? (Round your answer to 2 decimal places.) c. What (qualatively) wil happen to the company's price icearniengs fatio? The PiE rato wil increase The Pre rato will decrease

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