Market''s expectation of the growth rate of mbi dividends

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Reference no: EM131524929

Computer stocks currently provide an expected rate of return of 18%. MBI, a large computer company, will pay a year-end dividend of $2.30 per share.

a. If the stock is selling at $53 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. Omit the "%" sign in your response.)

Growth rate %

Reference no: EM131524929

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