Question
MF Corp. has an ROE of 16% and a plowback ratio of 25%. If the coming year's earnings are expected to be $4 per share,
MF Corp. has an ROE of 16% and a plowback ratio of 25%. If the coming year's earnings are expected to be $4 per share, at what price will the stock sell? The market capitalization rate is 12%.
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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Public Finance
Authors: Steven G. Medema, Carl Sumner Shoup
1st Edition
0202307859, 978-0202307855
