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 2015. Also assume that the firm's equity beta is 1.40, the risk-free rate is 2.05 percent, and the market riskpremium is 6.1 percent.Dividends per shareReturn on equityBook value per share2015 value per shareAverage price multipleForecasted growth rateUsing P/E ratioUsing P/CF ratioUsing P/S ratio$ 2.288.50%$17.15Share priceEarnings Cash Flow$ 5.20 $6.7013.309.4813.5211.518Using the P/E, P/CF, and P/S ratios, estimate the 2016 share price for Beagle Beauties. (Do not round intermediate calculations.Round your answers to 2 decimal places.)Sales$25.752.447.461

Investors, analysts, and financial professionals frequently utilize the P/E ratio as a valuation…

Answered: Dividends per share Return on equity…

Business

Accounting

Dividends per share Return on equity Book value per share $ 2.28 8.50% $17.15

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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