8. A company had $18 of sales per share for the year that just ended. You expect the com- pany to grow their sales at 6.5 percent for the next five years. After that, you expect the company to grow...

Extracted text: 8. A company had $18 of sales per share for the year that just ended. You expect the com- pany to grow their sales at 6.5 percent for the next five years. After that, you expect the company to grow 3.5 percent in perpetuity. The company has a 14 percent ROE and expect that to continue forever. The company's net margins are 6 percent and the cost of equity is 11 percent. Use the free cash flow to equity model to value this stock. 8. you