please answer both questions.

4. Consider the attached value line statement for Caterpillar (CAT). Complete the following: a. What is the current theoretical price using the P/E ratio? Use the time period of 2016-2020 as your "history" (10 pts) b. What is the l-year ahead expected price using the P/S ratio? Using the forward growth rate estimate from the sheet. Use the time period of 2016 - 2020 as your "history". (10 pts) CATERPILLAR INC. NYS.CAT VALUE ST 184.72 kl. 23.6()42 1.15% 2.2% Yake 043183 The Rug 2014 LEGENDS TENEM 1 LETY 2 TECHNICAL 3 BEIN month Target Price Range LON 1154 HOMECTS 200 -150 TOTALTUN11 htutional con 333 200 22 13 M 2000 20001 SISU 2010 2011 2012 OVOM HAUS 10 NAN 100.0 100 ON M03 OK . M Wh 1 X 60 20 11.00 2 19.000 1.001 100 1 at ar' . 10 4.15 285 AN EN 437 402 11.10 11 60 10 AN 1 UN 100 14 320 30 30 311 26 42 Luova YO 241 12 UUS U 7 TH IN 23 WIN NA 1999 11411 12 MH 1320 1230 NO 20 21 h LLLLLS 191 RO TIE 0 ME 12 2 11 13 120 22 10 LAB 64 Relate IA 235 40% 12 222 An Antony CARTAL STRUCTURE D3356 m. 120117200 RON ETH LTS Banna Bano Mue med SOMEO by CAT PALM Home L7 99200201202212222 CM 4840 Tower 1644 Cipt NASRAH Non inte 2 ALL ILLA ANA Meren 12.00 od 01.02.2d Middle IN PRE 2012 210 000001000000 aluno 12.40 101 141921017230 Sv. 100 common the 500.000 MUROS ER TON CAP T ANANILON SNE 11 MARKET CAR1100 HI an inn 2h ZISTAS CURRENT POGON 2018 NOIS O as Divi Com 2018 WINESS Ceported to write prier 2018 Ace out 102.300 FO Marco Belt Ord Announ or connect Other to del conte Vegarder 42 CM Current Pideci de ore, per comprador, Colective Oficere Umgeby married DE A Rede M were players Anos del 510 La Chow Sie 100 best Tole Du med andre for More 06-1000Wernet www.cap.com Dhar Our Caterpillar reported better than Caterpillar. As for International markets, expected fourth quarter results. Sales resurgence in activity in many sectom ANNUAL MATEO EO11 235 billion beat our $11.187 billion across China support machinery sales will TS 08 Cash For 4.05 etistomers to looson their purse strings while Caterpillar didn't give guidance 2 said that Book Value 26 dustrieement, which accounted for the was well 1.808 billion in males. Improvement there the future and will emerge from the C DAREMBAN Warp De 1 ed to the surprising top-line performance pandemie stronger company 2014 10 R $1.48 estimate steep decrease in me said that we would expect a recovery. At 1278 1140 as well as telling, B Tand administrativo per limited the Thirimarily reflects a repurgence BIPAREA IN 1000 Wall Street had high hopes for the te hurt activity in and markets and din Doc. company, as the beat chains. 22 year are looking for $46.90 Quarter in three rupe 2820 IN 25 year the December period. billion and 37.00 Th11 20 reflected share, implying year optimiam of approximately 10% 2011 1 AN 1. IN 2022 29 230 countries and recovering boost demand for machinery used recovery. In price, CH QUARTERTONDENSOR the contre in intra- Caterpillar shares offer solld total re Dec 21 Llon market continued to display vigor, pull the timely stock should also appeal 2007 22 70 M 10 reflecting very impressive domestic home to inventore seeking Income, as Ita divi construction starts in the December term. dend yold continues to hover above the N 100 100 100 101 Lastly, a rebound in many commodity current Value Line median LIR marketa, especially copper uur well for Dominic A. Sila February 12, 2021 Szerobna prih Company AEN 110 Home 19.10 wang WEWE Shiba ble Avans w New serie To subscribe Call 1-800-VALUELINE neturing Referal wear o incre in public species would Even after that 2:39 4. Consider the attached value line statement for Caterpillar (CAT). Complete the following: a. What is the current theoretical price using the P/E ratio? Use the time period of 2016-2020 as your "history" (10 pts) b. What is the l-year ahead expected price using the P/S ratio? Using the forward growth rate estimate from the sheet. Use the time period of 2016 - 2020 as your "history". (10 pts) CATERPILLAR INC. NYS.CAT VALUE ST 184.72 kl. 23.6()42 1.15% 2.2% Yake 043183 The Rug 2014 LEGENDS TENEM 1 LETY 2 TECHNICAL 3 BEIN month Target Price Range LON 1154 HOMECTS 200 -150 TOTALTUN11 htutional con 333 200 22 13 M 2000 20001 SISU 2010 2011 2012 OVOM HAUS 10 NAN 100.0 100 ON M03 OK . M Wh 1 X 60 20 11.00 2 19.000 1.001 100 1 at ar' . 10 4.15 285 AN EN 437 402 11.10 11 60 10 AN 1 UN 100 14 320 30 30 311 26 42 Luova YO 241 12 UUS U 7 TH IN 23 WIN NA 1999 11411 12 MH 1320 1230 NO 20 21 h LLLLLS 191 RO TIE 0 ME 12 2 11 13 120 22 10 LAB 64 Relate IA 235 40% 12 222 An Antony CARTAL STRUCTURE D3356 m. 120117200 RON ETH LTS Banna Bano Mue med SOMEO by CAT PALM Home L7 99200201202212222 CM 4840 Tower 1644 Cipt NASRAH Non inte 2 ALL ILLA ANA Meren 12.00 od 01.02.2d Middle IN PRE 2012 210 000001000000 aluno 12.40 101 141921017230 Sv. 100 common the 500.000 MUROS ER TON CAP T ANANILON SNE 11 MARKET CAR1100 HI an inn 2h ZISTAS CURRENT POGON 2018 NOIS O as Divi Com 2018 WINESS Ceported to write prier 2018 Ace out 102.300 FO Marco Belt Ord Announ or connect Other to del conte Vegarder 42 CM Current Pideci de ore, per comprador, Colective Oficere Umgeby married DE A Rede M were players Anos del 510 La Chow Sie 100 best Tole Du med andre for More 06-1000Wernet www.cap.com Dhar Our Caterpillar reported better than Caterpillar. As for International markets, expected fourth quarter results. Sales resurgence in activity in many sectom ANNUAL MATEO EO11 235 billion beat our $11.187 billion across China support machinery sales will TS 08 Cash For 4.05 etistomers to looson their purse strings while Caterpillar didn't give guidance 2 said that Book Value 26 dustrieement, which accounted for the was well 1.808 billion in males. Improvement there the future and will emerge from the C DAREMBAN Warp De 1 ed to the surprising top-line performance pandemie stronger company 2014 10 R $1.48 estimate steep decrease in me said that we would expect a recovery. At 1278 1140 as well as telling, B Tand administrativo per limited the Thirimarily reflects a repurgence BIPAREA IN 1000 Wall Street had high hopes for the te hurt activity in and markets and din Doc. company, as the beat chains. 22 year are looking for $46.90 Quarter in three rupe 2820 IN 25 year the December period. billion and 37.00 Th11 20 reflected share, implying year optimiam of approximately 10% 2011 1 AN 1. IN 2022 29 230 countries and recovering boost demand for machinery used recovery. In price, CH QUARTERTONDENSOR the contre in intra- Caterpillar shares offer solld total re Dec 21 Llon market continued to display vigor, pull the timely stock should also appeal 2007 22 70 M 10 reflecting very impressive domestic home to inventore seeking Income, as Ita divi construction starts in the December term. dend yold continues to hover above the N 100 100 100 101 Lastly, a rebound in many commodity current Value Line median LIR marketa, especially copper uur well for Dominic A. Sila February 12, 2021 Szerobna prih Company AEN 110 Home 19.10 wang WEWE Shiba ble Avans w New serie To subscribe Call 1-800-VALUELINE neturing Referal wear o incre in public species would Even after that 2:39