Question 3. Walgreen, a large retail drugstore chain in the United States, reported net income of $221 million in 1993 on revenues of $8298 million. It paid out 31% of its earnings as dividends, a payout ratio that is expected to remain level from 1994 to 1998, during which period earnings growth is expected to be 13.5%. After 1998, earnings growth is expected to decline to 6%, and the dividend payout ratio is expected to increase to 60%. The beta is 1.15 and this figure is expected to remain unchanged. The Treasury bond rate is 7%. a. Estimate the price/sales ratio for Walgreens, assuming its profit margin remains unchanged at 1993 levels. b. How much of this price/sales ratio can be attributed to extraordinary growth