Question 8 1 points Save Answe The National City Corporation, a bank holding company reported earnings per share of $2.40 in 1993, and paid dividends per share of $1.06. The earnings had grown 7.5% a year over the prior five years, and were expected to grow 6% a year in the long term (starting in 1994). The stock had a bota of 1.06 and traded for ten times earnings. The treasury bond rate was 7 . The equity premium is 5.5%. What long term growth rate is implied in the firm's current P/E ratio? 10% 8.0% 8.9% Oo 8.4%