10. A company's book value of equity is 200 million euro. This company has 100 million shares outstanding and shareholders require a return of 12%. This company operates in a mature industry and, even if a few years back the company's return on equity (ROE) was 15%, competition has reduced this company's ROE to 12%. Determine the price per share.

b) 2

Answer rating: 100% (QA)

To determine the price per share we can use the pricetobook ratio PB ratio approach The PB ratio is ... View the full answer