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Business, 31.07.2019 23:10 Jackpumpkin

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? b. if dividend growth forecasts for mbi are revised downward to 5% per year, what will happen to the price of mbi stock? c. what (qualitatively) will happen to the company’s price–earnings ratio?

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