The following data was available for Morris, Inc., for the year ending December 31, 2001:
Sales per share = $150.
Earnings per share = $1.75.
Return on Equity (ROE) = 16%.
Required rate of return = 12%.
If the expected growth rate in dividends and earning is 4%, what will the appropriate price-to-sales (P/S) multiple be for Morris? A. 0.037. B. 0.109. C. 0.114.
