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Soloha48 [4]
1 year ago
12

A firm has a P/E ratio of 12 and a ROE of 13% and a market to book value of what?

Business
1 answer:
maxonik [38]1 year ago
6 0

Answer:

1.56

Explanation:

Calculation for the market-to-book value

First step is to calculate for the P/E ratio

P/E ratio=1/12

P/E ratio= 0.0833

Now let find the market-to-book value using this formula

Market-to-book value = ROE percentage/P/E ratio

Let plug in the formula

Market-to-book value=0.13/0.0833

Market-to-book value= 1.56

Therefore the Market-to-book value will be 1.56

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