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

Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter10: Stockholder's Equity
Section: Chapter Questions
Problem 88PSA: Ratio Analysis Consider the following information taken from the stockholders equity section: How do...
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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.)
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
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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