Problem 6-21 Price Ratio Analysis (LO4, CFA4) Given the information below for Seger Corporation, compute the expected...

70.2K

Verified Solution

Question

Finance

Problem 6-21 Price Ratio Analysis (LO4, CFA4)
Given the information below for Seger Corporation, compute theexpected share price at the end of 2017 using price ratio analysis.Assume that the historical average growth rates will remain thesame for 2017. (Do not round intermediate calculations.Round your answers to 2 decimal places.)
Year 2011 2012 2013 2014 2015 2016
Price $ 103.50 $ 109.40 $ 108.10 $ 105.60 $ 127.10 $ 142.50
EPS 4.59 5.30 6.10 6.80 7.75 8.75
CFPS 8.02 8.84 9.16 10.87 12.25 13.40
SPS 60.10 65.10 64.50 68.00 79.20 87.20
Share price
Using P/E ratio:
Using P/CF ratio:
Using P/S ratio:

Answer & Explanation Solved by verified expert

4.0 Ratings (657 Votes)

See Answer

Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:

Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!

Become a Member

Transcribed Image Text

Problem 6-21 Price Ratio Analysis (LO4, CFA4)Given the information below for Seger Corporation, compute theexpected share price at the end of 2017 using price ratio analysis.Assume that the historical average growth rates will remain thesame for 2017. (Do not round intermediate calculations.Round your answers to 2 decimal places.)Year201120122013201420152016Price$103.50$109.40$108.10$105.60$127.10$142.50EPS4.595.306.106.807.758.75CFPS8.028.849.1610.8712.2513.40SPS60.1065.1064.5068.0079.2087.20Share priceUsing P/E ratio:Using P/CF ratio:Using P/S ratio:

Year	2011		2012		2013		2014		2015		2016
Price	$	103.50	$	109.40	$	108.10	$	105.60	$	127.10	$	142.50
EPS		4.59		5.30		6.10		6.80		7.75		8.75
CFPS		8.02		8.84		9.16		10.87		12.25		13.40
SPS		60.10		65.10		64.50		68.00		79.20		87.20