P/B calculation, problem 12, P. 563, Equity? problem, current, correct

Walex

You are give ROE=0.27, current EPS=$1.36, payout ratio=0.67, r=11.5%, g=9%
Find justified P/BV.

The way they did it in the answer is simply using P0/V0 = (ROE - g)/(r-g) = 7.2

However, the correct formula is derived as:

P0 = E0(1+g)(1-b)/(r-g), our good old formula. To find P0/BV0, divide both sides by BV0:

P0/BV0 = E0/BV0(1+g)(1-b)/(r-g), since E0/BV0 = current ROE = 0.27, then

P0/BV0 = 0.27(1.09)(0.67)/(.115-0.09) = 7.89

I think their answer is not correct, what do you think?