Hi Patrick, thanks for reaching out with the feedback. With respect to the ROE, if the lift in equity is associated with a reduction in ROE, then it is because the company is less risky. This is consistent with the MM proposition that a lift in equity capital reduces the expected cost of equity. From a Gordon growth perspective, its not clear that this changes the book multiple. Although the expected roe falls, so does the discount rate, k, which should offset one another. p/e = 1/(k-g). p/bvps = roe/(k-g).