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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ISBN: 9780073530703

9th Edition

Authors: Zvi Bodie, Alex Kane, Alan J. Marcus

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Question Posted: Jan 04, 2013 07:59 AM

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a. MF Corp. has an ROE of 16% and a plowback ratio of 50%. If the coming

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