Question: Could you answer the question below with some work? Use this information for questions 1-4: Boucher Service Companys EPS is $3.00. The payout rate is

Could you answer the question below with some work?

Use this information for questions 1-4: Boucher Service Companys EPS is $3.00. The payout rate is 60%, the growth rate of earnings and dividends is 4%, and required return on equity is 7%. Bouchers ROE is 10% and the firms net profit margin (NPM) is 5%. Assume the constant growth model is appropriate.

What is Bouchers justified price/book ratio (P0/B0)? (Enter your answer to the nearest 0.01.)

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