H h21 New member Joined Jun 18, 2026 Messages 0 Reaction score 0 May 20, 2016 #1 AS TITLED, how do I get that result from equation????
A AndyG New member Joined Jun 18, 2026 Messages 0 Reaction score 0 May 20, 2016 #2 P = B(0) + RI / (r - g), P/B = 1 + (ROE - r) / (r - g), RI < 0, => (ROE - r) < 0, => (ROE - r) / (r - g) < 0, => P/B < 1
P = B(0) + RI / (r - g), P/B = 1 + (ROE - r) / (r - g), RI < 0, => (ROE - r) < 0, => (ROE - r) / (r - g) < 0, => P/B < 1