Problem

$8$

$-$

$08$

$$I

A company had $

$15$

$$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, you expect the company to grow

$4\mathrm{.}75$

$$percent in perpetuity. The company has a

$12$

$$percent ROE and you expect that to continue forever. The company's net margins are

$5$

$$percent and the cost of equity is

$8$

$$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

$8$

$-$

$08$

$$equity model to value this stock. Do not round intermediate calculations. Round your answer to the nearest cent.