Question: 4. MLB's current return on equity (ROE) is 25%, and it pays out 40% of its earnings as dividends. As of this moment, the company's

4. MLB's current return on equity (ROE) is 25%, and it pays out 40% of its earnings as dividends. As of this moment, the company's book value of equity per share is $60. Assume that the ROE and payout ratio should stay constant for the next three years, after which the ROE will drop to 10% and the payout ratio will increase to 80%. The cost of capital is 20%. What is MLB's stock price today? (15 pts.)

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