Understand P/B = (ROE -g)/ (r-g)
But if g has positive relationship with P/B? Thanks.
Understand P/B = (ROE -g)/ (r-g)
But if g has positive relationship with P/B? Thanks.
If ROE > r, then as g increases, P/B increases.
If ROE < r, then as g increases, P/B decreases.