a. MF Corp. has an ROE of 16% and a plowback ratio of 50%. If the coming

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a. MF Corp. has an ROE of 16% and a plowback ratio of 50%. If the coming year’s earnings are expected to be $2 per share, at what price will the stock sell? The market capitalization rate is 12%.

b. What price do you expect MF shares to sell for in three years? P-69

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ISE Investments

ISBN: 9781266085963

13th International Edition

Authors: Zvi Bodie, Alex Kane, Alan Marcus

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