a. MF Corp. has an ROE of 15% and a plowback ratio of 40%. If the...

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a. MF Corp. has an ROE of 15% and a plowbackratio of 40%. If the coming year's earnings are expected to be $3per share, at what price will the stock sell? The marketcapitalization rate is 12%. (Round your answer to 2 decimalplaces. Do not round intermediate calculations.)
Price $
b. What price do you expect MF shares to sellfor in three years? (Do not round intermediatecalculations. Round your answer to 2 decimal places.)
Price $

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Information provided ROE 15 Plowback ratio 40 Market capitalization ratio 12 Earnings per share is computed as below 31 040 180 See Answer

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a. MF Corp. has an ROE of 15% and a plowbackratio of 40%. If the coming year's earnings are expected to be $3per share, at what price will the stock sell? The marketcapitalization rate is 12%. (Round your answer to 2 decimalplaces. Do not round intermediate calculations.)Price $b. What price do you expect MF shares to sellfor in three years? (Do not round intermediatecalculations. Round your answer to 2 decimal places.)Price $