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.) 2014 Year Price $100.50 EPS CFPS SPS 2.65 7.77 57.60 Using PE ratio Using P/CF ratio Using P/S ratio 2015 $106.40 3.36 8.64 62.60 2016 2017 $105.10 $102.60 4.16 9.01 62.00 Share Price 2018 $124.10 4.86 10.62 7.50 12.10 65.50 76.70 2019 $139.50 8.50 13.30 84.70

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
Price $100.50 $106.40
EPS
3.36
8.64
CFPS
SPS
62.60
2.65
7.77
57.60
Using PE ratio
Using P/CF ratio
Using P/S ratio
2016
2017
$105.10 $102.68
4.16
9.01
62.00
Share Price
2018
$124.10
4.86
7.50
10.62
12.10
65.50 76.70
2019
$139.50
8.50
13.30
84.70
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 Price $100.50 $106.40 EPS 3.36 8.64 CFPS SPS 62.60 2.65 7.77 57.60 Using PE ratio Using P/CF ratio Using P/S ratio 2016 2017 $105.10 $102.68 4.16 9.01 62.00 Share Price 2018 $124.10 4.86 7.50 10.62 12.10 65.50 76.70 2019 $139.50 8.50 13.30 84.70
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