26. Price Ratio Analysis (LO4, CFA8) The current price of Parador Industries stock is $67 per share.

Current sales per share are $18.75, the sales growth rate is 8 percent, and Parador does not pay a dividend. The expected return on Parador stock is 13 percent. What one-year-ahead P/S ratio is consistent with Parador’s expected return and sales growth rate?

Use the following information to answer Problems 27–31.

Beagle Beauties engages in the development, manufacture, and sale of a line of cosmetics designed to make your dog look glamorous. Below you will find selected information necessary to compute some valuation estimates for the firm. Assume the values provided are from year-end 2019. Also assume that the firm’s equity beta is 1.40, the risk-free rate is 2.75 percent, and the market risk premium is 7 percent.

Dividends per share $ 2.04 Return on equity 9.50%

Book value per share $17.05 Earnings Cash Flow Sales 2019 value per share $ 5.00 $ 6.60 $25.65 Average price multiple 13.10 9.42 2.36 Forecasted growth rate 13.48% 11.41% 7.34%