Calculate the enterprise price-to-book ratio

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Question: Simple Valuation with Sales Growth Rates (Medium) An analyst forecasts that the current core return on net operating assets of 15.5 percent will continue indefinitely in the future with a 5 percent annual sales growth rate. She also forecasts that the current asset turnover ratio of 2.2 will persist. Calculate the enterprise price-to-book ratio ifthe required return for operations is 9.5 percent.

Reference no: EM131491158

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