(15 points) PNC Corporation stock traded at $150/share with a price/book ratio of 1.15 (115%) year-end 2020. The company retains a beta of 1.40. The Company increased their annual dividend to $4.60 per share in 2020 based on annual earnings per share of $16.96 and a ROEbook of 13.90%. First, estimate the cost of equity for the super-regional institution based on the CAPM: the long-term risk-free rate is 1.50% and the market risk premium is 5.40% (Rm - Rf). Second, why does the Company's stock trade at a price/book premium? Third, determine their ROEmarket. Fourth, derive the dividend yield and payout based on recent performance. Fifth, estimate the sustainable growth rate for the bank based on the recent ROEbook and dividend payout. Sixth, derive the average, annual compound growth rate of dividends between 2017 and 2020; the Company paid $3.00 per share in 2017 v. $4.60 in 2020. Finally, indicate if and briefly why PNC's dividend policy appears appropriate. (15 points) PNC Corporation stock traded at $150/share with a price/book ratio of 1.15 (115%) year-end 2020. The company retains a beta of 1.40. The Company increased their annual dividend to $4.60 per share in 2020 based on annual earnings per share of $16.96 and a ROEbook of 13.90%. First, estimate the cost of equity for the super-regional institution based on the CAPM: the long-term risk-free rate is 1.50% and the market risk premium is 5.40% (Rm - Rf). Second, why does the Company's stock trade at a price/book premium? Third, determine their ROEmarket. Fourth, derive the dividend yield and payout based on recent performance. Fifth, estimate the sustainable growth rate for the bank based on the recent ROEbook and dividend payout. Sixth, derive the average, annual compound growth rate of dividends between 2017 and 2020; the Company paid $3.00 per share in 2017 v. $4.60 in 2020. Finally, indicate if and briefly why PNC's dividend policy appears appropriate