Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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Manshuk 

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
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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
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