What price will the stock sell

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Reference no: EM131316384

MF Corp. has an ROE of 16% and a plowback ratio of 50%. The market capitalization rate is 12%.

Required:

(a) If the coming year's earnings are expected to be $2 per share, at what price will the stock sell? (Omit the "$" sign in your response.)

Price $

(b) What price do you expect MF shares to sell for in three years? (Round your answer to 2 decimal places. Omit the "$" sign in your response.)

Price $

Reference no: EM131316384

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