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 $ 2.26 9.50% $ 18.70 2021 value per share Average price multiple Forecasted growth rate Earnings $ 5.00 13.10 Cash Flow Sales $ 6.30 $ 25.65 9.53 2.47 13.59% 7.23% 11.30% 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

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
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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
Transcribed Image Text: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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