Suppose a firm has had the following historic sales figures.Year:2016Sales $1,420,0002017$1,720,000Next year's sales201820192020$1,600,000 $2,010,000 $1,770,000What would be the forecast for next year's sales using FORECAST.ETS to estimate a trend?Note: Round your answer to the nearest whole dollar.27

Forecasting refers to the measure of the possible performance of an asset. It is usually calculated…

Answered: Suppose a firm has had the following…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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The average industry PE ratio for a firm is 17.79. What should the current stock price of this firm be if it has projected earnings of $6.69 per share? Please round your answer to 2 decimal places.
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 EPS 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 Share Price: 2017 $ 87.00 4.91 10.77 74.40 2018 $108.50 7.65 12.19 85.60 2019 $123.90 8.65 13.36 93.60
The expected market return is E(RM)is estimated to be 12% per annum, while the risk-free return (rf) is 3%. What is the expected return of Starbucks (SBUX) stock given the below beta estimate?
Estimating Share Value Using the DCF Model Following are forecasted sales, NOPAT, and NOA for Texas Roadhouse for 2016 through 2019. a. Forecast the terminal period values assuming a 1% terminal period growth rate for all three model inputs: Sales, NOPAT, and NOA. Round your answers to the nearest dollar. Reported Forecast Horizon Terminal $ thousands 2015 2016 2017 2018 2019 Period Sales $1,807,368 $2,078,473 $2,390,244 $2,581,464 $2,787,981 Answer NOPAT 102,495 170,435 196,000 211,680 228,614 Answer NOA 662,502 761,904 876,189 946,284 1,021,987 Answer b. Estimate the value of a share of TXRH common stock using the discounted cash flow (DCF) model as of December 29, 2015; assume a discount rate (WACC) of 7%, common shares outstanding of 70,091 thousand, net nonoperating obligations (NNO) of $(14,680) thousand, and noncontrolling interest (NCI) from the balance sheet of $7,520 thousand. Note that NNO is negative because the company’s cash exceeds its…
Please answer Question 8 & 9 8.On March 24, 2020, the Dow Jones Industrial Average opened at $18,591.93 and closed at $20,704.91. What was the daily return that day, and what was the effective annual rate return (in percent) of the stock market that day?Daily Return: __________% EAR:_________ % 9. Financial analysts forecast GDY Inc.’s growth for the future to be 8%. GDY's recent annual dividend was $6.00. What is the value of GDY stock when the required return is 11%?Stock Value: $___________________
The following table shows the nominal returns on Brazilian stocks and the rate of inflation. Year Nominal Return (%) 2015 2016 0.2 -13.0 2017 -11.0 2018 -42.1 2019 2020 66.9 27.6 Inflation (%) 6.5 6.6 7.1 11.4 7.0 3.6 a. What was the standard deviation of the market returns? Note: Use decimals, not percents, in your calculations. Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places. b. Calculate the average real return. Note: A negative answer should be indicated by a minus sign. Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places. a. Standard deviation b. Average real return % %

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