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Given the following information for Hopkins Company, determine the companys theoretically correct PB ratio: Net Operating Assets $266 Owners Equity $266 RNOA 14% ROE 14%

Given the following information for Hopkins Company, determine the companys theoretically correct PB ratio:

Net Operating Assets $266
Owners Equity $266
RNOA 14%
ROE 14%
WACC 8%
Expected Growth rate in ROPI 4%

Select one:

a. 1.0

b. 1.67

c. 2.0

d. 2.5

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