SWASH

1. The vignette didn’t mention whether it was fair value or book value. Since it’s the only value given, I’d take that as the value you need for calculation.
2. Franchise P/E = g/(r-g) * (1/r-1/ROE). If RR is higher, holding ROE constant, g will be lower. Therefore g/(r-g) will be lower and result in lower franchise P/E
Haven’t done the second book yet.