Given the information below for HooYah! Corporation, compute the expected share price at the end of 2020 using price ratio analysis. Assume that the historical (arithmetic) average growth rates will remain the same for 2020. (Do not round intermediate calculations. Round your answers to 2 decimal places. Exclude negative annual PE 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 2015 2016 2017 2014 $22.00 $ 58.50 2018 $97.00 2019 $ 27.50 Price $130.00 $207.00 -.47 EPS -6.00 -5.29 -1.80 .04 .06 CFPS -13.00 -10.50 -2.80 -.05 .38 .08 SPS 19.00 27.50 25.10 28.60 32.10 35.95 Using PE ratio Using P/CF ratio Using P/S ratio Share Price
Given the information below for HooYah! Corporation, compute the expected share price at the end of 2020 using price ratio analysis. Assume that the historical (arithmetic) average growth rates will remain the same for 2020. (Do not round intermediate calculations. Round your answers to 2 decimal places. Exclude negative annual PE 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 2015 2016 2017 2014 $22.00 $ 58.50 2018 $97.00 2019 $ 27.50 Price $130.00 $207.00 -.47 EPS -6.00 -5.29 -1.80 .04 .06 CFPS -13.00 -10.50 -2.80 -.05 .38 .08 SPS 19.00 27.50 25.10 28.60 32.10 35.95 Using PE ratio Using P/CF ratio Using P/S ratio Share Price
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter10: Stockholder's Equity
Section: Chapter Questions
Problem 88PSA: Ratio Analysis Consider the following information taken from the stockholders equity section: How do...
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What is the answer for the P/CF ratio? (It is not 78.10)
Transcribed Image Text:Given the information below for HooYah! Corporation, compute the expected share
price at the end of 2020 using price ratio analysis. Assume that the historical
(arithmetic) average growth rates will remain the same for 2020. (Do not round
intermediate calculations. Round your answers to 2 decimal places. Exclude
negative annual PE 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
2014
2015
2017
2019
2016
$130.00
2018
$97.00 $ 27.50
$ 22.00
$ 58.50
$207.00
-6.00
-5.29
-1.80
-.47
.04
.06
Price
EPS
CFPS
SPS
-13.00
-10.50
-2.80
-.05
.38
.08
19.00
27.50
25.10
28.60
32.10
35.95
Using PE ratio
Using P/CF ratio
Using P/S ratio
Share Price
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