7. You have just begun sell side research coverage of Madison Bank & Trust (MBT), a...

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7. You have just begun sell side research coverage of Madison Bank & Trust (MBT), a small market bank headquartered in Madison, NJ. You have built a model that provides the following information for MBT and have compiled a table of industry multiples: Multiples for Small Banks End of Year Year 2024 Net Income (MM) $ 74.45 Assets (MM) $ 255.75 Liabilities (MM) $ 84.44 Free Cash Flow (MM) $ Outstanding Shares (MM) 82.66 25.12 2024 P/E 11.4 x P/FCF 8.8 x P/B P/S 4.1 x 7.3 x Based on the data in your tables, what is the best estimate of what the price of MBT should be at the end of 2024? If MBT was currently trading at $23.52, and has announced it will pay a $1.50 dividend before the end of the year, what is the expected return? (2pt) Price Return 7. You have just begun sell side research coverage of Madison Bank & Trust (MBT), a small market bank headquartered in Madison, NJ. You have built a model that provides the following information for MBT and have compiled a table of industry multiples: Multiples for Small Banks End of Year Year 2024 Net Income (MM) $ 74.45 Assets (MM) $ 255.75 Liabilities (MM) $ 84.44 Free Cash Flow (MM) $ Outstanding Shares (MM) 82.66 25.12 2024 P/E 11.4 x P/FCF 8.8 x P/B P/S 4.1 x 7.3 x Based on the data in your tables, what is the best estimate of what the price of MBT should be at the end of 2024? If MBT was currently trading at $23.52, and has announced it will pay a $1.50 dividend before the end of the year, what is the expected return? (2pt) Price Return

Answer rating: 100% (QA)

Identified Problem Description 11You have just begun sellside research coverage of Madison Bank Trus... View the full answer