Question 1 (8 marks) A particular company currently has sales of $250 million; sales are expected to grow by 20% next year. For the year after next year, the growth rate in sales is expected to equal 10%. Over each of the next 2 years, the company is expected to have net profit margin of 8% and a payout ratio of 50%, and to maintain the common stock outstanding at 15 million shares. The stock always trades at a P/E of 15 times earnings, and the investor has a required rate of return of 20%. Find the stock value in year 1 and 2 by using the P/E multiple. (8 marks)