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  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...

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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
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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           $

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