Question
MF Corp. has an ROE of 13% and a plowback ratio of 45%. The market capitalization rate is 14%. a. If the coming year's earnings
| MF Corp. has an ROE of 13% and a plowback ratio of 45%. The market capitalization rate is 14%. |
| a. | If the coming year's earnings are expected to be $2.40 per share, at what price will the stock sell? (Do not round intermediate calculations. Round your answer to 2 decimal places. Omit the "$" sign in your response.) |
| Price | $ |
| b. | What price do you expect MF shares to sell for in 4 years? (Do not round intermediate calculations. Round your answer to 2 decimal places. Omit the "$" sign in your response.) |
| Price | $ |
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Emotions In Finance Booms Busts And Uncertainty
Authors: Jocelyn Pixley
2nd Edition
1107633370, 978-1107633377
