Given the information below for HooYah! Corporation, compute the expected share price at the end of 2022 using price ratio analysis. Assume that the historical (arithmetic) average growth rates will remain the same for 2022. Note: Do not round intermediate calculations. Round your answers to 2 decimal places. Exclude negative annual P/E 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 2016 $ 15.00 -7.00 -16.00 2017 $ 51.50 -6.29 -13.50 2018 2019 $ 123.00 $ 200.00 2020 $ 90.00 2021 $ 20.50 -2.10 -0.45 0.03 0.06 -3.10 -0.15 0.38 0.08 SPS 12.00 20.50 21.60 25.10 28.60 28.95

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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Raghubhai 

Given the information below for HooYah! Corporation, compute the expected share price at the end of 2022 using price ratio analysis.
Assume that the historical (arithmetic) average growth rates will remain the same for 2022.
Note: Do not round intermediate calculations. Round your answers to 2 decimal places. Exclude negative annual P/E 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
2016
$ 15.00
-7.00
-16.00
2017
$ 51.50
-6.29
-13.50
2018
2019
$ 123.00 $ 200.00
2020
$ 90.00
2021
$ 20.50
-2.10
-0.45
0.03
0.06
-3.10
-0.15
0.38
0.08
SPS
12.00
20.50
21.60
25.10
28.60
28.95
Using PE ratio
Using P/CF ratio
Using P/S ratio
Share Price
Transcribed Image Text:Given the information below for HooYah! Corporation, compute the expected share price at the end of 2022 using price ratio analysis. Assume that the historical (arithmetic) average growth rates will remain the same for 2022. Note: Do not round intermediate calculations. Round your answers to 2 decimal places. Exclude negative annual P/E 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 2016 $ 15.00 -7.00 -16.00 2017 $ 51.50 -6.29 -13.50 2018 2019 $ 123.00 $ 200.00 2020 $ 90.00 2021 $ 20.50 -2.10 -0.45 0.03 0.06 -3.10 -0.15 0.38 0.08 SPS 12.00 20.50 21.60 25.10 28.60 28.95 Using PE ratio Using P/CF ratio Using P/S ratio Share Price
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