Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. a. mf corp. has an roe of 15% and a plowback ratio

a. MF Corp. has an ROE of 15% and a plowback ratio of 40%. If the...

90.2K

Verified Solution

Question

Finance

a. MF Corp. has an ROE of 15% and a plowbackratio of 40%. If the coming year's earnings are expected to be $3per share, at what price will the stock sell? The marketcapitalization rate is 12%. (Round your answer to 2 decimalplaces. Do not round intermediate calculations.)

Price           $

b. What price do you expect MF shares to sellfor in three years? (Do not round intermediatecalculations. Round your answer to 2 decimal places.)

Price           $

Answer & Explanation Solved by verified expert
4.1 Ratings (542 Votes)
Information provided ROE 15 Plowback ratio 40 Market capitalization ratio 12 Earnings per share is computed as below 31 040 180    See Answer
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Transcribed Image Text

a. MF Corp. has an ROE of 15% and a plowbackratio of 40%. If the coming year's earnings are expected to be $3per share, at what price will the stock sell? The marketcapitalization rate is 12%. (Round your answer to 2 decimalplaces. Do not round intermediate calculations.)Price           $b. What price do you expect MF shares to sellfor in three years? (Do not round intermediatecalculations. Round your answer to 2 decimal places.)Price           $

Other questions asked by students

Q

Describe how the motion of a planet (like Mars) among the stars of the zodiac on...

Physics
Q

Why do many analysts claim that the spread of formal organizations threatens personal privacy? What do...

Psychology
Q

Post-development theorists insist that any attempt to quantify and measure “development” contributes to the further oppression...

Psychology
Q

Find the exact circumferenc 5 area 196 mi

Geometry
Q

oval O A O B triangle O C circle D square

Geometry
Q

Calculate the critical t value s for each of the given hypothesis test scenarios below...

Statistics
Q

Convert to a decimal and a percent 47 20 Decimal Percent

Statistics
Q

ble below includes results from polygraph lie detector experiments conducted by researchers In each case...

Statistics
Q

13 Given the formula V Tr solve for r Or Or 5 7 Or 5...

Algebra
Q

Question 1: Your employer, CYC Financial Services Inc. (a U.S. based company) is in the...

Accounting
Q

The Anderson Company has a maximum production capacity of 50,000 units per year. For that...

Accounting
Q

Jantzen Company recorded employee salaries earned but not yet paid. Which of the following represents...

Accounting