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 SPS 2016 $24.00 -4.00 -15.00 21.00 Using PE ratio Using P/CF ratio Using P/S ratio 2017 $ 60.50 -3.29 -12.50 29.50 Share Price 2018 $ 132.00 -2.00 -3.00 26.10 2019 $ 209.00 -0.52 -0.20 29.60 2020 $99.00 0.06 0.48 33.10 2021 $29.50 0.06 0.08 37.95
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 SPS 2016 $24.00 -4.00 -15.00 21.00 Using PE ratio Using P/CF ratio Using P/S ratio 2017 $ 60.50 -3.29 -12.50 29.50 Share Price 2018 $ 132.00 -2.00 -3.00 26.10 2019 $ 209.00 -0.52 -0.20 29.60 2020 $99.00 0.06 0.48 33.10 2021 $29.50 0.06 0.08 37.95
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
Manshuk
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
SPS
2016
$24.00
-4.00
-15.00
21.00
Using PE ratio
Using P/CF ratio
Using P/S ratio
2017
$ 60.50
-3.29
-12.50
29.50
Share Price
2018
$ 132.00
-2,00
-3.00
26.10
2019
$ 209.00
-0.52
-0.20
29.60
2020
$99.00
0.06
0.48
33.10
2021
$ 29.50
0.06
0.08
37.95
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
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