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Horse and Buggy Incorporated is in a declining industry. Sales, earnings, and dividends are all...

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Accounting

Horse and Buggy Incorporated is in a declining industry. Sales, earnings, and dividends are all shrinking at a rate of 10% per year.Horse and Buggy Incorporated is in a declining industry. Sales, earnings, and dividends are all shrinking at a rate of 10% per year.
a. If r=20% and DIV1=$3, what is the value of a share?
Note: Do not round intermediate calculations. Round your answer to 2 decimal places.
b. What price do you forecast for the stock next year?
Note: Do not round intermediate calculations. Round your answer to 2 decimal places.
Stock price
c. What is the expected rate of return on the stock?
Note: Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.
If r =20% and DIV1=$3
, what is the value of a share?
Note: Do not round intermediate calculations. Round your answer to 2 decimal places.
What price do you forecast for the stock next year?
Note: Do not round intermediate calculations. Round your answer to 2 decimal places.
What is the expected rate of return on the stock?
Note: Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.
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