Subject:FinancePrice:4.86 Bought8
Nextbig Corp. currently has sales of $870 million; sales are expected to grow by 26% next year (year 1). For the year after next (year 2), the growth rate in sales is expected to equal 13%. Over each of the next two years, the company is expected to have a net profit margin of 11% and a payout ratio of 40% and to maintain the common stock outstanding at 24 million shares. The stock always trades at a P/E of 15 times earnings, and the investor has a required rate of return 18%. Given this information:
Purchased 8 times