Question: Company SSD is trying to estimate their equity multiples based on the following information: High-growth period = 6 years, net income of $185 on sales

Company SSD is trying to estimate their equity multiples based on the following information: High-growth period = 6 years, net income of $185 on sales of $1,450, with book value of equity of $1,125. During the high-growth period, the payout ratio will be 15%, and the firms beta of 1.25, risk-free rate of 2% and market risk premium of 5% will remain constant. After the 6-year high-growth period, the growth rate in earnings will drop to 3%. Using this information, determine the companys P/E, PEG, Price to Book Value and Price to Sales ratios. Show the calculation in details.

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