Question
MF Corp. has an ROE of 14% and a plowback ratio of 40%. If the coming year's earnings are expected to be $2 per share,
| MF Corp. has an ROE of 14% and a plowback ratio of 40%. 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%. (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 | $ |
rev: 03_13_2015_QC_CS-9930, 03_31_2015_QC_CS-12168
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Port Infrastructure Finance
Authors: Hilde Meersman, Eddy Van De Voorde, Thierry Vanelslander
1st Edition
