FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Please need answer the general accounting question

The current price of Parador Industries stock is $68 per
share. Current sales per share are $18.75, the sales growth
rate is 9 percent, and Parador does not pay a dividend. The
expected return on Parador stock is 13 percent. What one-
year ahead P/S ratio is consistent with Parador's expected
return and sales growth rate?
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Transcribed Image Text:The current price of Parador Industries stock is $68 per share. Current sales per share are $18.75, the sales growth rate is 9 percent, and Parador does not pay a dividend. The expected return on Parador stock is 13 percent. What one- year ahead P/S ratio is consistent with Parador's expected return and sales growth rate?
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