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 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 $5\%$ per year, what will happen to the price of MBI stock? $($Round your answer to $2$ decimal places.$)$

Price