MF Corp. has an ROE of 16% and a plowback ratio of 50%. The market capitalization rate is 12%.

Required:

(a)	If the coming year's earnings are expected to be $2 per share, at what price will the stock sell? (Omit the "$" sign in your response.)

Price

$

(b)	What price do you expect MF shares to sell for in three years? (Round your answer to 2 decimal places. Omit the "$" sign in your response.)

Price

$