The constant-growth DCF formula:is sometimes written as:where BVPS is book equity value pe...

The constant-growth DCF formula:

is sometimes written as:

where BVPS is book equity value per share, b is the plowback ratio, and ROE is the ratio of earnings per share to BVPS. Use this equation to show how the price-to-book ratio varies as ROE changes. What is price-to-book when ROE = r?