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please show any work, thank you! Picture looks a little blurry on my end so here are the numbers. you are valuing a bank Currently
please show any work, thank you!
Picture looks a little blurry on my end so here are the numbers.
you are valuing a bank
Currently has assets of $340 per share
5 years from now (end of 5 years) you expect their assets per share to be $470
After year 5 you expect their assets per share to grow at 3.25% per year forever
Bank has an ROA of 2.2%
ROE of 11%
9.5% cost of equity
Use the free cash flow to equity model to value this stock to the nearest cent.
Thanks again!
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