Given the information below for Seger 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.) 2014 Year Price $106.50 EPS CFPS SPS 3.40 8.27 62.60 Using PE ratio Using P/CF ratio Using P/S ratio 2016 2015 $112.40 $111.10 4.11 9.04 67.60 4.91 9.31 67.00 Share Price 2017 2018 $108.60 $130.10 5.61 11.12 70.50 8.00 12.40 81.70 2019 $145.50 9.00 13.50 89.70

Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter10: Stockholder's Equity
Section: Chapter Questions
Problem 88PSA: Ratio Analysis Consider the following information taken from the stockholders equity section: How do...
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Given the information below for Seger 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.)
Year
2014
2015
Price $106.50 $112.40
EPS
CFPS
SPS
3.40
8.27
62.60
Using PE ratio
Using P/CF ratio
Using P/S ratio
4.11
9.04
67.60
2016
$111.10
4.91
9.31
67.00
Share Price
2017
2018
$108.60 $130.10
5.61
11.12
70.50
8.00
12.40
81.70
2019
$145.50
9.00
13.50
89.70
Transcribed Image Text:Given the information below for Seger 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.) Year 2014 2015 Price $106.50 $112.40 EPS CFPS SPS 3.40 8.27 62.60 Using PE ratio Using P/CF ratio Using P/S ratio 4.11 9.04 67.60 2016 $111.10 4.91 9.31 67.00 Share Price 2017 2018 $108.60 $130.10 5.61 11.12 70.50 8.00 12.40 81.70 2019 $145.50 9.00 13.50 89.70
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