medium · CFA Level I equity
Pinion Logistics is currently trading at a price-to-book (P/B) ratio of 1.0.
If the company's ROE is 12% and its required return (r) is 12%, what is the justified P/B ratio if the company's growth rate (g) increases from 3% to 6%?
- 1.5
- 2.0
- 1.0
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