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QUESTION 28 (In this question, do not round intermediate calculations, show the growth rate in percent, and round all your answers to 2 decimal places,
QUESTION 28 (In this question, do not round intermediate calculations, show the growth rate in percent, and round all your answers to 2 decimal places, e.g., 32.16.) Metallica Bearings Inc., has sales of $595,000, costs of $263,000, depreciation expense of $66,000, interest expense of $33,000, and a tax rate of 30 percent. The firm paid out $41.000 in cash dividends to its shareholders who own 50,000 shares of common stock outstanding. The book value of the common stock is $649,000 a. What is the earnings per share figure? Earnings per share $1 b. The average P/E ratio of the industry is 8. The net income of the firm is predicted to grow at a rate of 3.6% in the next two years. Using price ratio analysis, estimate the price per share of the company's common stock in two years? Price per share in two years $ c. What is the sustainable growth rate of the firm? Sustainable growth rate % QUESTION 20
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