Question 5 1 points Save Answer Longs Drug, a large U.S. drugstore chain operating primarily in Northern California, had sales per share of $122 in 1993, on which it reported earnings per share of $2.45 and paid a dividend per share of $1.12. The company is expected to grow 6% in the long term, and has a beta of 0.90. The current T.Bond rate is 7%. Estimate the appropriate price/sales multiple for Longs Drug. The stock is currently trading for $34 per share. Assuming the growth rate is estimated correctly, what would the profit margin need to be to justity this price per share. 5.40% 27.87% 3.42% 19.87%