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FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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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.)
F111171
Year
2014
2015
2016
2017
2018
2019
Price
$103.50
$109.40
$ 108.10
$105.60
$ 127.10 $ 142.50
EPS
4.59
5.30
6.10
6.80
7.75
8.75
CFPS
8.02
8.84
9.16
10.87
12.25
13.40
SPS
60.10
65.10
64.50
68.00
79.20
87.20
Share Price
Using PE ratio
$
181.08+/-1%
Using P/CF ratio
$
167.97+/-1%
Using P/S ratio
$
154.75+-1%
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.) F111171 Year 2014 2015 2016 2017 2018 2019 Price $103.50 $109.40 $ 108.10 $105.60 $ 127.10 $ 142.50 EPS 4.59 5.30 6.10 6.80 7.75 8.75 CFPS 8.02 8.84 9.16 10.87 12.25 13.40 SPS 60.10 65.10 64.50 68.00 79.20 87.20 Share Price Using PE ratio $ 181.08+/-1% Using P/CF ratio $ 167.97+/-1% Using P/S ratio $ 154.75+-1%
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