If the firm is in stable growth growing 6 a year and has a


Design Corp is a specialty furniture retailer with revenues of 2.5 billion, and a book value of equity of 500 million. If the firm is in stable growth, growing 6% a year and has a payout ratio of 60%, estimate the price/sales ratio of the firm. The beta is 1.00, and the treasury bond rate is 6.5%.

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Finance Basics: If the firm is in stable growth growing 6 a year and has a
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