Question
MF Corp. has an ROE of 16% and a plowback ratio of 50%. If the coming year's earnings are expected to be $3 per share,
| MF Corp. has an ROE of 16% and a plowback ratio of 50%. If the coming year's earnings are expected to be $3 per share, at what price will the stock sell? The market capitalization rate is 11%. (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.) |
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Finance With Monte Carlo
Authors: Ronald W. Shonkwiler
2013th Edition
146148510X, 978-1461485100
