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 $25.00 -5.00 -16.00 22.00 Using PE ratio Using P/CF ratio Using P/S ratio 2015 $61.50 -4.29 -13.50 30.50 2017 2016 $133.00 $210.00 -2.10 -3.10 26.60 Share Price -.53 -.15 30.10 2019 2018 $100.00 $ 30.50 .06 .08 38.95 .07 .53 33.60
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 2014 $25.00 -5.00 -16.00 22.00 Using PE ratio Using P/CF ratio Using P/S ratio 2015 $61.50 -4.29 -13.50 30.50 2017 2016 $133.00 $210.00 -2.10 -3.10 26.60 Share Price -.53 -.15 30.10 2019 2018 $100.00 $ 30.50 .06 .08 38.95 .07 .53 33.60
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
Related questions
Question
Ee.83.

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
2014
2015
2016
Price $25.00 $61.50 $133.00
EPS
-2.10
CFPS
-3.10
SPS
26.60
-5.00
-4.29
-16.00 -13.50
22.00
30.50
Using PE ratio
Using P/CF ratio
Using P/S ratio
Share Price
2017
$210.00
-.53
-.15
30.10
2018
$100.00
.07
.53
33.60
2019
$30.50
.06
.08
38.95
Expert Solution

This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 3 steps with 2 images

Recommended textbooks for you

Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,



Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,



Foundations Of Finance
Finance
ISBN:
9780134897264
Author:
KEOWN, Arthur J., Martin, John D., PETTY, J. William
Publisher:
Pearson,

Fundamentals of Financial Management (MindTap Cou…
Finance
ISBN:
9781337395250
Author:
Eugene F. Brigham, Joel F. Houston
Publisher:
Cengage Learning

Corporate Finance (The Mcgraw-hill/Irwin Series i…
Finance
ISBN:
9780077861759
Author:
Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor
Publisher:
McGraw-Hill Education