Question: please help i need as excel work Required: a. Computer stocks currently provide an expected rate of return of 12%. MBI, a large computer company,
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-eamings ratio? O The P/E ratio will increase The P/E ratio will decrease
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
