Given the following data for a hypothetical corporation its stock CURRENT YEAR FORECAST NEXT YEAR SALES $575 0 million DECLINE OF 3 FROM CURRENT YEAR NET PROFIT MARGIN 4 5 4 2 NUMBER SHARES O S (MILLIONS) 15 5 15 7 P E RATIO 22 0 x 19 0 x Suppose current stock price is $28 Rate of return stockholders require (K) is 12 Determine whether you should buy or sell this stock Show all formulas calculations

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Question: Given the following data for a hypothetical corporation & its stock. CURRENT YEAR FORECAST NEXT YEAR SALES $575.0 million DECLINE OF 3% FROM CURRENT YEAR

Given the following data for a hypothetical corporation & its stock.

	CURRENT YEAR	FORECAST NEXT YEAR
SALES	$575.0 million	DECLINE OF 3% FROM CURRENT YEAR
NET PROFIT MARGIN	4.5%	4.2%
NUMBER SHARES O/S (MILLIONS)	15.5	15.7
P/E RATIO	22.0 x	19.0 x

Suppose current stock price is $28. Rate of return stockholders require (K) is 12%. Determine whether you should buy or sell this stock. Show all formulas & calculations.

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