Using the chart below, compute the VRE ratio for each company and use it to determine which firm(s) might interest a value investor:

                                      ROE                Price                EPS

Company A                 15%                 $60                  $3.00

Company B                 20%                 $30                  $2.00

Company C                 12%                 $15                  $1.50

1- Using the above information, calculate the VRE for Company A.

2- Using the above information, calculate the VRE for Company B.

3- Based on the VRE calculations, which firm(s) would be attractive to a value investor? Select one or more:

·   Company A

·   Company B

·   Company C

·   Both Company B and Company C.