Assume a company has a payout ratio of 45 percent, a profit margin of 4 percent, a

Question:

Assume a company has a payout ratio of 45 percent, a profit margin of 4 percent, a cost of equity of I 0 percent and a growth rate of 2.5 percent.

a. What is the forward price-sales multiple?

b. What is the trailing price-sales multiple?

Cost Of Equity
The cost of equity is the return a company requires to decide if an investment meets capital return requirements. Firms often use it as a capital budgeting threshold for the required rate of return. A firm's cost of equity represents the...

Fantastic news! We've Found the answer you've been seeking!