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

Related questions

Question
What is the correct answer for the second one? (I submitted it on here earlier hit the second one was wrong)
Given the information below for HooYah! 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. Exclude
negative annual PE 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
2014
2015
2016
2017
2018
2019
$ 27.50
.06
$ 22.00
$ 58.50
-5.29
Price
$130.00
$207.00
$ 97.00
EPS
-6.00
-1.80
-.47
.04
•38
32.10
CFPS
-13.00
-10.50
-2.80
-.05
.08
SPS
19.00
27.50
25.10
28.60
35.95
Share Price
Using PE ratio
Using P/CF ratio
Using P/S ratio
expand button
Transcribed Image Text:Given the information below for HooYah! 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. Exclude negative annual PE 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 2014 2015 2016 2017 2018 2019 $ 27.50 .06 $ 22.00 $ 58.50 -5.29 Price $130.00 $207.00 $ 97.00 EPS -6.00 -1.80 -.47 .04 •38 32.10 CFPS -13.00 -10.50 -2.80 -.05 .08 SPS 19.00 27.50 25.10 28.60 35.95 Share Price Using PE ratio Using P/CF ratio Using P/S ratio
Expert Solution
Check Mark
Knowledge Booster
Background pattern image
Finance
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.
Recommended textbooks for you
Text book image
Essentials Of Investments
Finance
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Mcgraw-hill Education,
Text book image
FUNDAMENTALS OF CORPORATE FINANCE
Finance
ISBN:9781260013962
Author:BREALEY
Publisher:RENT MCG
Text book image
Financial Management: Theory & Practice
Finance
ISBN:9781337909730
Author:Brigham
Publisher:Cengage
Text book image
Foundations Of Finance
Finance
ISBN:9780134897264
Author:KEOWN, Arthur J., Martin, John D., PETTY, J. William
Publisher:Pearson,
Text book image
Fundamentals of Financial Management (MindTap Cou...
Finance
ISBN:9781337395250
Author:Eugene F. Brigham, Joel F. Houston
Publisher:Cengage Learning
Text book image
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