Question
a. MF Corp. has an ROE of 16% and a plowback ratio of 50%. If the coming year's earnings are expected to be $3 per
| a. | MF Corp. has an ROE of 16% and a plowback ratio of 50%. If the coming year's earnings are expected to be $3 per share, at what price will the stock sell? The market capitalization rate is 11%. (Do not round intermediate calculations. Round your answer to 2 decimal places.) |
| 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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Fundamentals of Financial Management
Authors: Eugene F. Brigham, Joel F. Houston
10th edition
978-1337902571, 1337902578, 978-1337911054, 1337911054, 978-0324272055
