A large commercial bank, You are valuing First Bank, a

A large commercial bank

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Reference no: EM13722268

You are valuing First Bank, a large commercial bank . The bank reported earnings per share of $4.00 last year , and paid out dividends of $2.40 per share. The ea rnings are expected to grow 4% a year in perpetuity, and the firm is expected to maintain its existing payout ratio. The firm'sequity beta is 1.25, the risk-free rate is 5% and the return on the market portfolio is 8.2%.

Reference no: EM13722268

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