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Use the company "Integrated micro$-$electronics" to answer the follow questions:

Project EPS: Forecast sales and Net income $($earnings$)$ for the next year end.

You will need from Milestone $05$:

Sustainable growth rate from the latest year calculations OR you may also look up a $3-$year average growth rate on the company $"$ Integrated Micro$-$Electronics"$($databases with analyst reports such as Plunkett, Morningstar, ValueLine for example provide this information$).$

Profit Margin from the latest year calculations

Multiply sales from the latest year end from the annual reports by $(1+$ sustainable growth rate$)=$ projected sales.

Use the Profit Margin ratio from the latest year $($as on the sustainable growth rate calculations$).$ Earnings $=$ Projected sales x profit margin

Divide Earnings$/$the number of shares outstanding $=$ EPS

Price$/$Earning Ratio $($P$/$E Ratio$)$

Calculate the P$/$E ratio from the latest year end data.

You will need the year end adjusted closing price for the stock based on the annual report fiscal year end. $[$Example: if the fiscal year end is April $30,$ or closest business day, then you will need the adjusted closing price of the stock on that date.$]$

You will need the total earnings attributable to common shareholders as reported on the annual report for that year.

P$/$E ratio $=$ Stock price $-$: $($Net income $-$: number of shares outstanding$)$

Forecasted stock price

Calculate the year end stock price using the P$/$E ratio from Part $2.$

Year end stock price $=($projected earnings $-$: number of shares outstanding$)\backslash$times P$/$E ratio

Comment on the results and whether you as the CEO$/$CFO of the company would share this projection with stockholders and other stakeholders at the next meeting$/$earnings report.

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