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 2014 2015 2016 2017 2018 2019 Price $55.10 $ 61.00 $ 59.70 $ 57.20 $ 78.70 $ 94.10 EPS 2.60 3.31 4.11 4.81 7.35 8.35 CFPS 7.62 8.52 8.92 10.47 12.01 13.24 SPS 26.20 31.20 30.60 34.10 45.30 53.30 Share Price Using PE ratio Using P/CF ratio Using P/S ratio

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
2014
2015
2016
2017
2018
2019
Price
$55.10
$ 61.00 $ 59.70
$ 57.20
$ 78.70
$ 94.10
EPS
2.60
3.31
4.11
4.81
7.35
8.35
CFPS
7.62
8.52
8.92
10.47
12.01
13.24
SPS
26.20
31.20
30.60
34.10
45.30
53.30
Share Price
Using PE ratio
Using P/CF ratio
Using P/S ratio
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 2014 2015 2016 2017 2018 2019 Price $55.10 $ 61.00 $ 59.70 $ 57.20 $ 78.70 $ 94.10 EPS 2.60 3.31 4.11 4.81 7.35 8.35 CFPS 7.62 8.52 8.92 10.47 12.01 13.24 SPS 26.20 31.20 30.60 34.10 45.30 53.30 Share Price Using PE ratio Using P/CF ratio Using P/S ratio
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