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MF Corp. has an ROE of 14% and a plowback ratio of 50%. The market capitalization rate is 12%. a. If the coming year's earnings

MF Corp. has an ROE of 14% and a plowback ratio of 50%. The market capitalization rate is 12%.

a. If the coming year's earnings are expected to be $1.80 per share, at what price will the stock sell?

b. What price do you expect MF shares to sell for in 2 years?

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