Given the information below for HooYah! Corporation, compute the expected share price at the end of 2022 using price ratio analysis. Assume that the historical (arithmetic) average growth rates will remain the same for 2022. Note: Do not round intermediate calculations. Round your answers to 2 decimal places. Exclude negative annual P/E and P/CFPS ratios from the average PE and average P/CFPS ratio calculations. When computing annual growth rates, use a positive sign on the annual rate of change if the per share value increased in value and use a negative sign on the annual rate of change if the per share value deceased in value. Year Price EPS CFPS SPS 2016 $ 27.00 -7.00 -18.00 24.00 Using PE rabo Using P/CF ratio Using P/S ratio 2017 $63.50 -6.29 -15.50 32.50 $ Answer is complete but not entirely correct. Share Price $ S 2018 $135.00 -2.30 -3.30 27.60 11.22 112 88 142.30 2019 $ 212.00 -0.57 -0.05 31.10 2020 $ 102.00 0.05 0.63 34.60 2021 $32.50 0.06 0.08 40.95
Given the information below for HooYah! Corporation, compute the expected share price at the end of 2022 using price ratio analysis. Assume that the historical (arithmetic) average growth rates will remain the same for 2022. Note: Do not round intermediate calculations. Round your answers to 2 decimal places. Exclude negative annual P/E and P/CFPS ratios from the average PE and average P/CFPS ratio calculations. When computing annual growth rates, use a positive sign on the annual rate of change if the per share value increased in value and use a negative sign on the annual rate of change if the per share value deceased in value. Year Price EPS CFPS SPS 2016 $ 27.00 -7.00 -18.00 24.00 Using PE rabo Using P/CF ratio Using P/S ratio 2017 $63.50 -6.29 -15.50 32.50 $ Answer is complete but not entirely correct. Share Price $ S 2018 $135.00 -2.30 -3.30 27.60 11.22 112 88 142.30 2019 $ 212.00 -0.57 -0.05 31.10 2020 $ 102.00 0.05 0.63 34.60 2021 $32.50 0.06 0.08 40.95
Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter11: Determining The Cost Of Capital
Section: Chapter Questions
Problem 5MC
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