What must be the market expectation of the growth rate

Assignment Help Financial Management

Reference no: EM131351521

a. Computer stocks currently provide an expected rate of return of 16%. MBI, a large computer company, will pay a year-end dividend of $3 per share. If the stock is selling at $60 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-1. 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 $

Reference no: EM131351521

Questions Cloud

Paper on non-verbal communication : Please Write a 10 page research paper on non-verbal communication

Describe at least two levels of each variable : What is a variable? --- List at least five different variables and then describe at least two levels of each variable.

Prepare a presentation on psychological testing movement : Develop a presentation including detailed speaker notes on the psychological testing movement describing the following:The main events within the movement,The biggest contributors to the movement,How the field of psychological testing has been revo..

Most important power in negotiation : Informational source of power is considered the most important power in negotiation. Explain why negotiators prefer information over any other form of power in the negotiation process.

What must be the market expectation of the growth rate : Computer stocks currently provide an expected rate of return of 16%. MBI, a large computer company, will pay a year-end dividend of $3 per share. If the stock is selling at $60 per share, what must be the market's expectation of the growth rate of MB..

Define operational definition of a variable : Define "operational definition" of a variable. Give at least two operational definitions of the variables you thought of in the previous review question.

Negotiating with wal-mart for your family farm milk : Consider a situation where you are negotiating with Wal-Mart for your family farm's milk. Confronted with various hardball price challenges, what type of negotiation situation would you use: distributive or integrative and why? What are your key n..

Which it is considering for full-scale production : The Battle Creek Breakfast Food Company has developed a new breakfast cereal which it is considering for full-scale production. Development costs have totaled $1,200,000. If the new cereal goes into production, the company expects to receive $12 per ..

Distinguish between laboratory and field experiments : What is the difference between an independent variable and a dependent variable?- Distinguish between laboratory and field experiments.

User Account

All Pages