Longs drug, a large u. s. drugstore chain operating primarily in northern california, had sales per share of $122 in 1993, on which it reported earnings per share of $2.45 and paid a dividend per share of $1.12. the company is expected to grow 6% in the long term, and has a beta of 0.90. the current t. bond rate is 7%. estimate the appropriate price/sales multiple for longs drug. the stock is currently trading for $34 per share. assuming the growth rate is estimated correctly, what would the profit margin need to be to justify this price per share.?