National City, a bank holding company, reported earnings per share of $2.40 and paid dividends per share of $1. The earnings had grown 7.

Get perfect grades by consistently using www.college-experts.com. Place your order and get a quality paper today. Take advantage of our current 20% discount by using the coupon code GET20


Order a Similar Paper Order a Different Paper

National City, a bank holding company, reported earnings per share of $2.40 and paid dividends per share of $1.06. The earnings had grown 7.5% a year over the prior 5 years, and were expected to grow 6% a year in the long run. The stock had a beta of 1.05 and traded for ten times earnings. The treasury bond rate was 7%.

A. Estimate the P/E Ratio

B. What long term growth rate is implied in the firms current PE Ratio?

Writerbay.net

Do you need help with this or a different assignment? We offer CONFIDENTIAL, ORIGINAL (Turnitin/LopesWrite/SafeAssign checks), and PRIVATE services using latest (within 5 years) peer-reviewed articles. Kindly click on ORDER NOW to receive an A++ paper from our masters- and PhD writers.

Get a 15% discount on your order using the following coupon code SAVE15


Order a Similar Paper Order a Different Paper