What price do you expect mf shares to sell for in three year

Assignment Help Financial Management
Reference no: EM131457774

a. MF Corp. has an ROE of 12% 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 11%. (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 $

Reference no: EM131457774

Questions Cloud

Common stock pays an annual dividend per share : The risk-free rate is 8% and the risk premium for this stock is 2%. If the annual dividend is expected to remain at $5.00, what is the value of the stock?
How much does the investment worth now : how much does the investment worth now? How much will it be next year if the annual return remains the same?
About practicing management : Analyze how the article relates to the unit’s topic and study of management. What does the article teach us about practicing management?
What is your expected one-year holding-period return : What is the intrinsic value of a share of Xyrong stock? What is your expected one-year holding-period return on Xyrong stock?
What price do you expect mf shares to sell for in three year : What price do you expect MF shares to sell for in three years? what price will the stock sell? The market capitalization rate is 11%.
Market capitalization rate-calculate the growth rate : The market capitalization rate for Admiral Motors Company is 10%. Calculate the growth rate.
What is intrinsic value of deployment specialists stock : what is the intrinsic value of Deployment Specialists stock?
Planning construction of new loading ramp : Capital investment: Acme is planning construction of a new loading ramp for its single iron mill.
What are costs of the individual capital components : The company has 60,000 bonds with a 30-year life outstanding, with 15 years until maturity. What are the costs of the individual capital components?

Reviews

Write a Review

Financial Management Questions & Answers

  Balance sheet-statement of cash flows for the year ended

The balance sheet for December 31, 2011, income statement for the year ended December 31, 2011, and the statement of cash flows for the year ended December 31, 2011, of Bernett Company are shown in the following balance sheet.

  What is the dollar amount of dividends-owning the stock

Lee purchased a stock one year ago for $27. The stock is now worth $30, and the total return to Lee for owning the stock was 0.40. What is the dollar amount of dividends that he received for owning the stock during the year?

  Considering upgrading its manufacturing equipment

Widget Company is considering upgrading its manufacturing equipment. The Vice-President of Production has identified three possible actions Widget could take to accomplish the upgrade. One option would upgrade their current equipment and the other tw..

  Explain how the financial system links these people together

Some people have money; some people need money. - Explain how the financial system links these people together.

  Coupon-paying bonds make annual coupon payments

Four years ago, Lisa Stills bought six-year, 9.76 percent coupon bonds issued by the Fairways Corp. for $947.68. If she sells these bonds at the current price of $914.97, what will be her realized yield on the bonds? Assume similar coupon-paying bond..

  Determine long-term financial viability

Determine long-term financial viability.

  Cash management system objectives include

Cash management system objectives include. The capital structure that minimizes the interest rate on debt also maximizes the stock price. The capital structure that maximizes the required return on equity also maximizes the stock price.The capital st..

  Elements of policy such as interest credits-mortality charge

Because they are not reported separately, elements of the policy such as interest credits, mortality charges, and death benefits are difficult to track. Universal life allows policyowners to participate in favorable investment, mortality and expense ..

  Infrastructure overhead of implementing strategy process

Why do many organizations choose not implement this process? Do you believe the cost and infrastructure overhead of implementing the Orion Strategy Process is worth the benefits? Why or why not? Without performing all of the steps within the Orion St..

  Standard sinking fund method repayment at rate

Show that the borrower’s periodic outlay for a standard sinking fund method repayment at rate j is larger than the level outlay under amortization method with the interest rate i, if i > j

  Use rounded numbers in intermediate calculations

You expect to receive $28,000 at graduation in two years. You plan on investing it at 9.75 percent until you have $163,000. Required: How long will you wait from now?   explain if there are any cash flow advantages of detaining

  What is the addition to retained earnings

Billy’s Exterminators, Inc., has sales of $592,000, costs of $284,000, depreciation expense of $36,000, interest expense of $28,000, a tax rate of 35 percent and paid out $63,000 in cash dividends. What is the addition to retained earnings?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd