Question: Aigo) Required: a. Computer stocks currently provide an expected rate of return of 16%. MBI, a large computer company, will pay a year-end dividend of

Aigo) Required: a. Computer stocks currently provide an expected rate of return of 16%. MBI, a large computer company, will pay a year-end dividend of $2 per share. If the stock is selling at $50 per share, what must be the market's expectation of the growth rate of Mel dividends? (Do not round Intermediate calculations. Round your answer to 2 decimal places.) toch Growth rate 12.00 b. If dividend growth forecasts for MBI are revised downward to 6% per year, what will be the price of the MBi stock? (Round your answer to 2 decimal places.) Price

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