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Question: mf corp has an roe of 15 and a plowback...

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MF Corp. has an ROE of 15% and a plowback ratio of 70%. The market capitalization rate is 16%. a. If the coming year’s earnings are expected to be $3.00 per share, at what price will the stock sell? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

b. What price do you expect MF shares to sell for in six years? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

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