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A commercial bank has recently reported eamings per share of $2.40 and paid dividends per share of $1.06. The eamings have grown 6% a year.
A commercial bank has recently reported eamings per share of $2.40 and paid dividends per share of $1.06. The eamings have grown 6% a year. The shares have a beta of 1.05 and a ferward an implied P/E ratio of 10 . The Treasury bond rate is 7% and the equity risk premium is 5.5%. a. Estimate the TTM P/E Ratio b. What long-term growth rate is implied in the firm's forward implied P/E ratio
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