Question
MF Corp. has an ROE of 14% and a plowback ratio of 60%. The market capitalization rate is 14%. a. If the coming year's earnings
MF Corp. has an ROE of 14% and a plowback ratio of 60%. The market capitalization rate is 14%.
a.If the coming year's earnings are expected to be $2.20 per share, at what price will the stock sell?(Do not round intermediate calculations. Round your answer to 2 decimal places.)
b.What price do you expect MF shares to sell for in four years?(Do not round intermediate calculations. Round your answer to 2 decimal places.)
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Principles of Information Systems
Authors: Ralph M. Stair, George W. Reynolds
9th edition
978-0324665284
