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26. Price Ratio Analysis (L04, CFA8) The current price of Parador Industries stock is $67 per share. Current sales per share are $18.75, the sales
26. Price Ratio Analysis (L04, 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-ahcad P/S ratio is consistent with Parador's expected return and sales growth rate? Use the following information to answer Problems 2731. Beagle Beauties engages in the development, manufacture, and sale of a line of cosmetics designed t make your dog look glamorous. Below you will find selected information necessary to compute som Stock Markets valuation estimates for the firm. Assume the values provided are from year-end 2015. Also assume hat the firm's equity beta is 1.40, the risk-free rate is 2.75 percent, and the market risk premium is percent. Dividends per share $ 2.04 9.50% Return on equity Book value per share $17.05 Earnings Cash Flow Sales $5.00 $6.60 $25.65 2015 value per share Average price multiple Forecasted growth rate 13.10 9.42 2.36 13.48% 11.41% 7.34%
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