Tear Price EPS CFPH SPE 2016 $91.60 4.49 7.72 47.60 2017 $97.50 5.20 8.60 52.60 2018 $96.20 6.00 8.98 52.00 2019 2020 $ 93.70 $ 115.20 6.70 7.45 12.07 66.70 10.57 55.50 2021 $130.60 8.45 13.28 74.70

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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Given the information below for Seger 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.
Year
Price
EPS
CFPS
SPE
2016
$ 91.60
4.49
7.72
47.60
Using PE ratio
Using P/CF ratio
Using P/S ratio
2017
$ 97.50
5.20
8.60
52.60
2018
$ 96.20
6.00
8.98
52.00
Share Price
2020
2021
2019
$93.70 $ 115.20 $ 130.60
8.45
7.45
12.07
13.28
66.70
74.70
6.70
10.57
55.50
Transcribed Image Text:3 Given the information below for Seger 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. Year Price EPS CFPS SPE 2016 $ 91.60 4.49 7.72 47.60 Using PE ratio Using P/CF ratio Using P/S ratio 2017 $ 97.50 5.20 8.60 52.60 2018 $ 96.20 6.00 8.98 52.00 Share Price 2020 2021 2019 $93.70 $ 115.20 $ 130.60 8.45 7.45 12.07 13.28 66.70 74.70 6.70 10.57 55.50
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