Good Evening!

Can you explain how to solve for this question?

Philip Morris International Inc. (PM) recently paid a dividend of $4.56 a share. PM has a 23% return on equity and pays out 30% of its earnings. Required rate of return for common shares of PM is 12%. Estimate PM's justified price to book ratio.

1) 3.16

2) 2.69

3) 1.68

4) 0.43

Thanks!