Beagle Beauties engages in the development, manufacture, and sale of a line of cosmetics designed to make your dog lookglamorous. Below you will find selected information necessary to compute some valuation estimates for the firm. Assume the valuesprovided are from year-end 2021. Also assume that the firm's equity beta is 1.20, the risk-free rate is 2.15 percent, and the market riskpremium is 5.0 percent.Dividends per shareReturn on equityBook value per share2021 value per shareAverage price multipleForecasted growth rate$ 2.06Using PE ratioUsing P/CF ratioUsing P/S ratio7.50%$ 17.20Earnings$ 5.0013.10Share Price13.49%Cash Flow$6.609.4311.40%Sales$25.652.37Using the PE, P/CF, and P/S ratios, estimate the 2022 share price for Beagle Beauties.Note: Do not round intermediate calculations. Round your answers to 2 decimal places.7.15%

The price of the share for next year can be found by multiplying the growth rate by the previous…

Answered: Beagle Beauties engages in the…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Beagle Beauties engages in the development, manufacture, and sale of a line of cosmetics designed to make your dog look glamorous. Below you will find selected information necessary to compute some valuation estimates for the firm. Assume the values provided are from year-end 2019. Also assume that the firm’s equity beta is 1.20, the risk-free rate is 2.65 percent, and the market risk premium is 7.0 percent. Dividends per share $ 2.26 Return on equity 9.50 % Book value per share $ 18.70 Earnings Cash Flow Sales 2019 value per share $ 5.00 $ 6.30 $ 25.65 Average price multiple 13.10 9.53 2.47 Forecasted growth rate 13.59 % 11.30 % 7.23 % Using the PE, P/CF, and P/S ratios, estimate the 2020 share price for Beagle Beauties.
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Beagle Beauties engages in the development, manufacture, and sale of a line of cosmetics designed to make your dog look glamorous. Below you will find selected information necessary to compute some valuation estimates for the firm. Assume the values provided are from year-end 2021. Also assume that the firm's equity beta is 1.20, the risk-free rate is 2.65 percent, and the market risk premium is 7.0 percent. Dividends per share Return on equity Book value per share 2021 value per share Average price multiple Forecasted growth rate $ 2.26 9.50% $ 18.70 Earnings $ 5.00 Cash Flow Sales $ 6.30 $ 25.65 13.10 9.53 2.47 13.59% 11.30% 7.23% Using the PE, P/CF, and P/S ratios, estimate the 2022 share price for Beagle Beauties. Note: Do not round intermediate calculations. Round your answers to 2 decimal places. Using PE ratio Using P/CF ratio Using P/S ratio Share Price

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