What is the intrinsic p-b ratio

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Problem 1: A firm is expected to have an ROCE of 6% per year indefinitely. Its current BPS is $9.27 and it has a required return of 8.2%. The firm has a full dividend payout policy. What is the intrinsic P/B ratio (approx.)?

Select one:

a. 1.90
b. 0.64
c. 1.27
d. 0.12

Reference no: EM132930768

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