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LF Industries has a current stock price of $49.86. It also has a P/B of...

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Finance

LF Industries has a current stock price of $49.86. It also has a P/B of 3.57 and book value per share of $13.97. Assume that the single-stage growth model is appropriate for valuing the company. LFs beta is 0.80, the risk-free rate is 5.00 percent, and the equity risk premium is 5.50 percent. Assume that the single-stage growth is appropriate for LF, what would be an appropriate P/B ratio for the firm if its expected growth rate is 6% and its ROE is 20 percent?

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