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Problem 8-11 Assume a company has a payout ratio of 42 percent, a profit margin of 6 percent, a cost of equity of 15

Problem 8-11 Assume a company has a payout ratio of 42 percent, a profit margin of 6 percent, a cost of equity of 15 percent and a growth rate of 2.5 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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