The Fort Murry Realty Ltd. is presently trading at $66 per share. Given the current business and financial characteristics of the company and the current capital market conditions, investors require a 15% rate of return on the company's common shares. The company has just paid a $3 dividend per share.

1. Determine the long-run average annual growth in dividend per share that is currently being expected.

2. Suppose due to a sudden downturn in the real estate sector of the economy, investors now expect the future per-share dividend payments of the company to decline at an average annual rate of 6% but, in view of their alternative investment opportunities, they still require a 15% rate of return on the company's common shares. How will this change in investor's expectations affect the market price of the company's common shares?

Detailed responses please. Will thumbs up if correct!