For Questions 12 - 15, please use the data below:

CIBC BMO RBC

Current Market Price: $91.59 $76.01 $74.83

Quarterly Dividends: $1.03 $0.78 $0.75

Beta: 0.87 0.73 0.86

Dividend Growth Rate: 7.73% 4.8% 8%

Required Rate of Return: 11% 11% 11%

Given the above information about the three chartered banks, please calculate and rank each bank (1^st, 2^nd, and 3^rd) based on the following ratios:

Question 12

Please calculate the Dividend Yield for all three banks.

CIBC BMO RBC

Question 13

From a market risk perspective, rank the banks that would perform better in a bear market (falling market) and why?

Question 14

Based on the Beta of the three banks, what should be their respective rate of return if the TSX return 15%.

CIBC BMO RBC

Question 15

Based on the Dividend Discount Model (DDM), please calculate the intrinsic value of CIBC stock and is the stock, undervalued or overvalued and would you buy it or sell it, if you own it?