##### 58 An analyst makes the following long-term forecasts for a company:
- Earnings retention rate: 40%
- Earnings growth rate: 5%
- Profit margin: 10%
- Expected rate of return: 15%
- Weighted average cost of capital: 14%
The company's justified price-to-sales (P/S) is closest to: | Chartered Financial Analyst Level 2 Quiz - LeetQuiz
Chartered Financial Analyst Level 2
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58 An analyst makes the following long-term forecasts for a company:
Earnings retention rate: 40%
Earnings growth rate: 5%
Profit margin: 10%
Expected rate of return: 15%
Weighted average cost of capital: 14%
The company's justified price-to-sales (P/S) is closest to: