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18. You are examining the wide differences in price/sales ratios that you can observe among firms in the retail store industry, and trying to come

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18. You are examining the wide differences in price/sales ratios that you can observe among firms in the retail store industry, and trying to come up with a rationale to explain these differences Company Price Sales per share EPS Expected Beta Payout Growth Bombay $38 $ 9.70 $0.68 29.00% 1.45 0% Company Bradlees 15 168.60 1.75 12.00% 1.15 34 Caldor 32 147.45 2.70 12.50% 1.55 0 Consolidated 21 23.00 0.95 26.50% 1.35 O Store Dayton 73 272.90 4.65 12.50% 1.30 38 Hudson Federated 22 58.90 1.40 10.00% 1.45 0 Kmart 23 101.45 1.75 11.50% 1.30 59 Nordstrom 36 43.85 1.60 11.50% 1.45 20 Penney 54 81.05 3.50 10.50% 1.10 41 Sears 57 150.00 4.55 11.00% 1.35 36 Tiffany's 32 35.65 1.50 10.50% 1.50 19 Wal-Mart 30 29.35 1.05 18.50% 1.30 11 Woolworth 23 74.15 1.35 13.00% 1.25 65 a. There are two companies that sell for more than revenues: the Bombay Company and Wal-Mart. Why? b. Which of these companies is most likely to be over/undervalued? How did you arrive at this judgment

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