(Continued from previous question) An analyst is evaluating…
Questions
(Cоntinued frоm previоus question) An аnаlyst is evаluating the stock of Company PQR using valuation multiples based on forecasted fundamentals and actual market figures. The analyst gathers the following financial information for the company: Current Stock Price: $64.00 Earnings per share: $4.00 Dividends per share: $2.40 Book value of equity per share: $16.00 Sales per share: $32.00 Return on Equity: 15.0% Required return on stock: 11.0% Based on the information above, what are the actual Price-to-Earnings (P/E) ratio and actual Price-to-Sales (P/S) ratio for the company, respectively?