Problem: A firm has the following summary balance sheet and income statement (in millions):
Net operating assets 469
Net financial obligations 236
Common equity 233
Operating income 70
Net financial expenses 14
Earnings 56
The firm held the same amount of net financial obligations during the whole year for which the earnings were reported. The equity of this firm trades at a P.B ratio of 2.9. The firm pays no dividends.
a. Calculate the levered P.E ratio for this firm.
b. Calculate the enterprise P.B and P.E ratios.