LF Industries has a current stock price of $49.86. It also has a P/B of...
90.2K
Verified Solution
Link Copied!
Question
Finance
LF Industries has a current stock price of $49.86. It also has a P/B of 3.57 and book value per share of $13.97. Assume that the single-stage growth model is appropriate for valuing the company. LFs beta is 0.80, the risk-free rate is 5.00 percent, and the equity risk premium is 5.50 percent. Assume that the single-stage growth is appropriate for LF, what would be an appropriate P/B ratio for the firm if its expected growth rate is 6% and its ROE is 20 percent?
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
- Unlimited Question Access with detailed Answers
- Zin AI - 3 Million Words
- 10 Dall-E 3 Images
- 20 Plot Generations
- Conversation with Dialogue Memory
- No Ads, Ever!
- Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Other questions asked by students
StudyZin's Question Purchase
1 Answer
$0.99
(Save $1 )
One time Pay
- No Ads
- Answer to 1 Question
- Get free Zin AI - 50 Thousand Words per Month
Best
Unlimited
$4.99*
(Save $5 )
Billed Monthly
- No Ads
- Answers to Unlimited Questions
- Get free Zin AI - 3 Million Words per Month
*First month only
Free
$0
- Get this answer for free!
- Sign up now to unlock the answer instantly
You can see the logs in the Dashboard.