Running Head: DISCUSIONS QUESTIONS1DISCUSIONS QUESTIONSAuthorProfessors Name,Course TitleInstitutionDate.DISCUSIONS QUESTIONS2Cathay General Bancorp growth rate estimateThe company will determine its growth rates for earnings, revenues, and dividends usingthe strategies such as the growth rate of the companys historical earnings, in getting informationfrom the analysts and finally looking at the fundamentals (Damodaran, 2008). Discussed belowis the estimation of the Cathay General Bancorps growth rates using each discussed method.Historical growth ratesThis process will seek to determine how fast the company has been capable of grows itsearnings including revenues and dividends over the last five years. Specifically, the method canemploy various was such as the arithmetic versus the geometric averages and simple versusregression models methods in determining the historical growth rates of the firm. However, it issignificant for the company to consider negative earnings and the impacts of scaling up.Cathay General Bancorp: arithmetic versus geometric growth ratesYearRevenues20122013201420152016ArithmeticAverageGeometricAverage$476.25M$467.30M$459.17M$486.38M$499.95M%Change-1.879%-1.739%5.925%2.789%1.274%2.71%EBITDA$118.782M$124.143M$137.830M$222.354M$235.985M%Change4.51%11.02%61.24%6.12%20.72%11.68%EBIT$58.85M$64.96M$75.94M$111.24M$115.56M%Change10.38%16.92%46.48%3.88%19.42%13.34% ...
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