Required:

a$.$ MF Corporation has an ROE of $16\%$ and a plowback ratio of $50\%.$ 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 $12\%.($Do not round intermediate calculations. Round your answer to $2$

decimal places.$)$

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.$)$

Price