Question
a. MF Corp. has an ROE of 12% and a plowback ratio of 50%. If the coming year's earnings are expected to be $2 per
| a. | MF Corp. has an ROE of 12% 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 11%. (Round your answer to 2 decimal places. Do not round intermediate calculations.) |
| Price | $ |
| b. | What price do you expect MF shares to sell for in three years? (Do not round intermediate calculations. Round your answer to 2 decimal places.) |
| Price | $ |
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Computational Techniques In Economics And Finance
Authors: Constantin Zopounidis
1st Edition
1613245580, 978-1613245583
