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 Price LPS CFPS SPS 2014 $84.90 2.70 7.92 66.50 Using PE ratio Using P/CF ratio Using P/S ratio 2015 $90.00 3.41 8.76 71.50 2016 $89.50 4.21 9.10 70.90 Share Price 2017 2018 $87.00 $108.50 4.91 10.77 74.40 7.65 12.19 85.60 2019 $123.90 8.65 13.36 93.60
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 Price LPS CFPS SPS 2014 $84.90 2.70 7.92 66.50 Using PE ratio Using P/CF ratio Using P/S ratio 2015 $90.00 3.41 8.76 71.50 2016 $89.50 4.21 9.10 70.90 Share Price 2017 2018 $87.00 $108.50 4.91 10.77 74.40 7.65 12.19 85.60 2019 $123.90 8.65 13.36 93.60
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 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
Price.
LPS
CFPS
SPS
2014
2015
$84.90 $90.80
2.70
7.92
66.50
Using PE ratio
Using P/CF ratio
Using P/S ratio
3,41
8.76
71.50
2016
$89.50
4.21
9.10
70.90
2017
2018
$87.00 $ 108.50
7.65
12.19
85.60
Share Price:
4.91
10.77
74,40
2019
$123.90
8.65
13.36
93.60
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