1. A. Valuate NVDIA stock using constant dividend growth model (provide details on your calculation) and multi period dividend discount model. B. Provide sensitivity analysis showing how stock(NVDIA) value varying with different discount rates and growth rates.
2. A municipal bond is paying a tax-exempt rate of 5%. If the banks marginal tax rate is 35%, what is the taxable equivalent yield?
3. What is the return on equity for a bank that has an equity multiplier of 11.65, an interest expense ratio of 5.5%, and a return on assets of 1.125%?