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 Price $ 17.00 EPS -5.00 CFPS SPS -18.00 14.00 Using PE ratio Using P/CF ratio Using P/S ratio 2015 2016 2017 $53.50 $125.00 $202.00 -4.29 -15.50 22.50 -2.30 -3.30 22.60 Share Price $ 103.09 $ 126.97 -.40 -.05 26.10 2018 $92.00 .05 .13 29.60 2019 $ 22.50 .06 .08 30.95
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 Price $ 17.00 EPS -5.00 CFPS SPS -18.00 14.00 Using PE ratio Using P/CF ratio Using P/S ratio 2015 2016 2017 $53.50 $125.00 $202.00 -4.29 -15.50 22.50 -2.30 -3.30 22.60 Share Price $ 103.09 $ 126.97 -.40 -.05 26.10 2018 $92.00 .05 .13 29.60 2019 $ 22.50 .06 .08 30.95
Fundamentals Of Financial Management, Concise Edition (mindtap Course List)
10th Edition
ISBN:9781337902571
Author:Eugene F. Brigham, Joel F. Houston
Publisher:Eugene F. Brigham, Joel F. Houston
Chapter8: Risk And Rates Of Return
Section: Chapter Questions
Problem 22SP
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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
Price
EPS
CFPS
SPS
2014
2015
$ 17.00 $ 53.50
-5.00
-4.29
-18.00
-15.50
14.00
22.50
Using PE ratio
Using P/CF ratio
Using P/S ratio
2016
$125.00
$
-2.30
-3.30
22.60
Share Price
$ 103.09
126.97
2017
$202.00
-.40
-.05
26.10
2018
$92.00
.05
.13
29.60
2019
$22.50
.06
.08
30.95
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