Determine the average annual rate of growth in sales over the past five years. (Assume sales in 2005 amounted to $7.5 million.) a. Use this average growth rate to forecast revenues for next year...

Determine the average annual rate of growth in sales over the past five years. (Assume sales in 2005 amounted

to $7.5 million.)

a. Use this average growth rate to forecast revenues for next year (2011) and the year after that (2012).

b. Now determine the company’s net earnings and EPS for each of the next two years (2011 and 2012).

c. Finally, determine the expected future price of the share at the end of this two-year period.