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Problem 8 - 1 1 Assume a company has a payout ratio of 4 2 percent, a profit margin of 5 percent, a cost of

Problem 8-11 Assume a company has a payout ratio of 42 percent, a profit margin of 5 percent, a cost of equity of 12 percent and a growth rate of 2.0 percent. Do not round intermediate calculations. Round your answers to three decimal places. a. What is the forward Price- sales multiple? b. What is the trailing price-sales multiple?

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