a. MF Corp. has an ROE of 16% and a plowback ratio of 50%. If the coming
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a. MF Corp. has an ROE of 16% 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%.
b. What price do you expect MF shares to sell for in 3 years?
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