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Question $3 - Relative Valuation (Comparables) Assume that you have forecast next year's sales for Gullfoyle Fasteners will be $4,600,000. The firm will have 39000
Question $3 - Relative Valuation (Comparables) Assume that you have forecast next year's sales for Gullfoyle Fasteners will be $4,600,000. The firm will have 39000 shares outstanding of common stock. rou also forecast the Common Size income Statement percentages ( of Sales) for next year (below). The stock is currently $98 per share. a. What is your forecast Net income for next year? b. What is the Earnines per Share (EPS)? c. What is the Sales per Share? c. What is the forecast P/E Ratio for the stock? d. What is the forecast P/S for the stock? e. If you believe the stock warrants a P/E of 13 , what do you belleve the target price should be for the stock? f. Is the stock a buy, sell, hold
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