If the coming years earnings are expected to be 2 per share


a. MF Corp. has an ROE of 20% and a plowback ratio of 50%. If the coming year's earnings are expected to be $2 per share, at what price will the stock sell? The market capitalization rate is 12%.(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.)

Price            $

Request for Solution File

Ask an Expert for Answer!!
Financial Management: If the coming years earnings are expected to be 2 per share
Reference No:- TGS02324124

Expected delivery within 24 Hours