Assume an analyst is evaluating a firm with $1,000 of book value of common equity and a cost of equity capital equal to 12 percent.Assume that the analyst forecasts that the firm will earn ROCE of 18 percent until year 2015,when the firm will start earning ROCE equal to 12 percent.The company pays no dividends and will not engage in any stock transactions.Use this information to complete the following table and calculate the firm's value-to-book ratio. 
Definitions:
Cash Requirements
Cash requirements refer to the total amount of cash a company needs to satisfy its operational expenses and financial obligations in a given period.
Long-Term Debt
Loans and financial obligations lasting more than one year, used as a means for business financing.
Corporate Ownership
Refers to the ownership of shares in a corporation, which represents claims on the corporation's assets and earnings.
Ability To Raise Capital
The capacity of a company to secure funds for its operations, growth, or to meet financial obligations, through debt, equity, or other financial instruments.
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