The coming year earnings are expected

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Reference no: EM131361047

MF Corp. has an ROE of 17% and a plowback ratio of 55%. The market capitalization rate is 15%.

a. If the coming year's earnings are expected to be $2.10 per share, at what price will the stock sell? (Do not round intermediate calculations. Round your answer to 2 decimal places. Omit the "$" sign in your response.)

PRICE = $ ?

b. What price do you expect MF shares to sell for in 5 years? (Do not round intermediate calculations. Round your answer to 2 decimal places. Omit the "$" sign in your response.)

PRICE = $ ?

Reference no: EM131361047

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