kickthatcfa

you can solve this from the RI model:

P = B + [(ROE-r)B] / (r-g)

or

P/B = 1 + (ROE-r) / (r-g)

P/B = (ROE-r) / (r-g) + (r-g) / (r-g)

P/B = (ROE-r + r-g) / (r-g)

P/B = (ROE-g) / (r-g)