Question Thirteen: Company/Industry Comparison (P/BV) Robert Wilson is an equity analyst with SureFire Investments and is trying to recommend a company in the leisure products sub-industry. Using a stock screen for potential value investments, Mr. Wilson was able to find four companies with low P/BV ratios. The following data was collected: Historical ROE (%) Price to Book Value 5-Year Company 2015 2016 2017 2018 2019 Average 4M 2.87 2.77 2.65 2.31 2.10 2.54 GD 1.93 2.11 2.35 2.01 2.22 2.12 IBF 1.73 1.76 1.85 1.90 1.93 1.83 CCX 2.21 2.10 2.05 1.80 1.81 1.99 Sub-industry Average Current Beta P/BV 2.34 1.1 2.45 1.2 1.60 1.4 2.10 1.2 1.2 14.5 11.5 9.8 12.2 15.0 3.01 REQUIRED: 1. Which share should Wilson recommend? 2. What improvements could be made to Wilson's methods for evaluating investments