The current price of Parador Industries stock is $46 per share. Current sales pe

Question

The current price of Parador Industries stock is $46 per share. Current sales per share are $22.3, the sales growth rate is 3 percent, and Parador does not pay a dividend. The expected return on Parador stock is 14 percent.

Calculate the sales per share one-year ahead. (Round your answer to 2 decimal places. Omit the "$" sign in your response.)

Calculate the P/S ratio one-year ahead. (Do not round intermediate calculations. Round your answer to 2 decimal places.)

The current price of Parador Industries stock is $46 per share. Current sales per share are $22.3, the sales growth rate is 3 percent, and Parador does not pay a dividend. The expected return on Parador stock is 14 percent.

Explanation / Answer

Sales per year 1 year ahead=22.3*(1.03)= 22.969

Stock price 1 year ahead=46*(1.14)= 52.44

P/S 1 year ahead=52.44/22.969=2.283077191

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