Nvidia Inc. just paid dividends of $1 per share on earnings of $4 per share. The book value of equity per share is $40 and dividends are expected to grow at 5% a year in the long term. The stock has a beta of 0.75. The treasury bond rate is 6% and the market risk premium is 5.5%. Estimate the price to book value of equity. Question 26 options:

0.512

1.456

1.222

0.453