Longs Drug, a large U.S. drugstore chain operating primarily in northern California, had sales per share of
Question:
a. Estimate the appropriate price/sales multiple for Longs Drug.
b. 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 justify this price per share?
Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...
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