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An analyst gathered the following information regarding Jemco Pharmaceuticals' stock: - Current stock price =$14.00 - Book value per share =$5.00 - Return on equity
An analyst gathered the following information regarding Jemco Pharmaceuticals' stock: - Current stock price =$14.00 - Book value per share =$5.00 - Return on equity =9% - Sustainable growth rate =4%. - Required return on equity =11% a. The stock's actual P/B multiple is: Round your answer to one decimal b. The justified P/B multiple based on forecasted fundamentals is: Round your answer to one decimal
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