mon Stock Evaluation Helg x You recelved no credit for this question in the prev

Question

mon Stock Evaluation Helg x You recelved no credit for this question in the previous attempt Check my work The current price of Parador Industries stock is $67 per share. Current sales per share are $18,75, the sales growth rate is 8 percent and Parador does not pay a dividend. The expected return on Parador stock is 13 percent. Calculate the sales per share one-year ahead. (Round your answer to 2 decimal places.) Sales per share b. Calculate the P/S ratio one-year ahead. (Do not round intermediate calculations. Round your answer to 3 d eclinal olaces ratio

Explanation / Answer

1. Sales per share one year ahead

Sales per share one year ahead = Current sales per share * (1 + Growth Rate)

Sales per share one year ahead = 18.75 * (1 + 0.08)

Sales per share one year ahead = $20.25

2. P/S Ratio one year ahead

Stock price one year ahead = Current price * (1 + Required rate)

Stock price one year ahead = 67 * (1 + 0.13)

Stock price one year ahead = $75.71

P/S Ratio one year ahead = Stock price one year ahead / Sale per share one year ahead

P/S Ratio one year ahead =75.71/ 20.25

P/S Ratio one year ahead =3.739

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