Question: Problem 8 - 0 8 A company had $ 1 6 of sales per share for the year that just ended. You expect the company

Problem 8-08
A company had $16 of sales per share for the year that just ended. You expect the company to grow their sales at 7 percent for the next five years. After that
grow 4 percent in perpetuity. The company has a 14 percent ROE and you expect that to continue forever. The company's net margins are 6 percent and the cost of equity is 9 percent.
Use the free cash flow to equity model to value this stock. Do not round intermediate calculations. Round your answer to the nearest cent.
$
Problem 8-08 A company had $16 of sales per share for

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