a. Answer options

Forward P/B Multiple is 0.07.

Forward P/B Multiple is 1.28

Forward P/B Multiple is 1.43

Forward P/B Multiple is not forecasted by analysts.

b. Answer options

Trailing P/B Multiple is 0.07

Trailing P/B Multiple is 1.28

Trailing P/B Multiple is 1.32

Trailing P/B Multiple is not forecasted by analysts.

Assume that a company has an ROE of 18 percent, a growth rate of 3 percent, and a payout ratio of 64 percent. The company also has a cost of equity of 12 percent. a. What is the forward price-book multiple? b. What is the trailing price-book multiple