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 2015 2014 $17.00 $ 53.50 -4.29 -5.00 -18.00 14.00 Using PE ratio Using P/CF ratio Using P/S ratio -15.50 22.50 2016 $125.00 -2.30 -3.30 22.60 Share Price 2017 $202.00 -.40 -.05 26.10 2019 2018 $92.00 $ 22.50 .06 .08 30.95 .05 .13 29.60
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 2015 2014 $17.00 $ 53.50 -4.29 -5.00 -18.00 14.00 Using PE ratio Using P/CF ratio Using P/S ratio -15.50 22.50 2016 $125.00 -2.30 -3.30 22.60 Share Price 2017 $202.00 -.40 -.05 26.10 2019 2018 $92.00 $ 22.50 .06 .08 30.95 .05 .13 29.60
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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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
-4.29
-5.00
-18.00
14.00
Using PE ratio
Using P/CF ratio
Using P/S ratio.
-15.50
22.50
2017
2016
$125.00 $202.00
-2.30 -.40
-3.30
-.05
22.60
26.10
Share Price
2018
2019
$92.00 $ 22.50
.05 1
.13
29.60
.06
.08
30.95
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