Question
In: Finance
A) Given the information below for Seger Corporation, compute the expected share price at the end...
A) Given the information below for Seger Corporation, compute the expected share price at the end of 2017 using price ratio analysis. Assume that the historical average growth rates will remain the same for 2017. (Do not round intermediate calculations. Round your answers to 2 decimal places.)
| Year | 2011 | 2012 | 2013 | 2014 | 2015 | 2016 | ||||||
| Price | $ | 61.10 | $ | 67.00 | $ | 65.70 | $ | 63.20 | $ | 84.70 | $ | 100.10 |
| EPS | 3.35 | 4.06 | 4.86 | 5.56 | 7.85 | 8.85 | ||||||
| CFPS | 8.12 | 8.92 | 9.22 | 10.97 | 12.31 | 13.44 | ||||||
| SPS | 31.20 | 36.20 | 35.60 | 39.10 | 50.30 | 58.30 | ||||||
|
B) Seger stock has a sustainable growth rate of 9 percent, ROE of 15 percent, and dividends per share of $3.15. If the P/E ratio is 19.7, what is the value of a share of stock? (Do not round intermediate calculations. Round your answer to 2 decimal places.)
Solutions
jeff jeffy answered 2 years agoRelated Solutions
Given the information below for Seger Corporation, compute the expected share price at the end of...
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
$
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...
Given the information below for Seger Corporation, compute the expected share price at the end of...
Given the information below for Seger Corporation, compute the
expected share price at the end of 2017 using price ratio analysis.
Assume that the historical average growth rates will remain the
same for 2017. (Do not round intermediate calculations.
Round your answers to 2 decimal places.)
Year
2011
2012
2013
2014
2015
2016
Price
$
97.50
$
103.40
$
102.10
$
99.60
$
121.10
$
136.50
EPS
3.15
3.86
4.66
5.36
7.25
8.25
CFPS
7.52
8.44
8.86
10.37
11.95
13.20...
Given the information below for Seger Corporation, compute the expected share price at the end of...
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
$
87.90
$
93.80
$
92.50
$
90.00
$
111.50
$
126.90
EPS
4.64
5.35
6.15
6.85
7.90
8.90
CFPS
8.17
8.96
9.25
11.02
12.34...
Given the information below for Seger Corporation, compute the expected share price at the end of...
Given the information below for Seger Corporation, compute the
expected share price at the end of 2017 using price ratio analysis.
Assume that the historical average growth rates will remain the
same for 2017. (Do not round intermediate calculations.
Round your answers to 2 decimal places.)
Year
2011
2012
2013
2014
2015
2016
Price
$
100.50
$
106.40
$
105.10
$
102.60
$
124.10
$
139.50
EPS
2.65
3.36
4.16
4.86
7.50
8.50
CFPS
7.77
8.64
9.01
10.62
12.10
13.30...
Given the information below for Seger Corporation, compute the expected share price at the end of...
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
$
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...
Given the information below for Seger Corporation, compute the expected share price at the end of...
Given the information below for Seger Corporation, compute the
expected share price at the end of 2017 using price ratio analysis.
Assume that the historical average growth rates will remain the
same for 2017. (Do not round intermediate calculations.
Round your answers to 2 decimal places.)
Year
2011
2012
2013
2014
2015
2016
Price
$
62.90
$
68.80
$
67.50
$
65.00
$
86.50
$
101.90
EPS
3.25
3.96
4.76
5.46
7.55
8.55
CFPS
7.82
8.68
9.04
10.67
12.13
13.32...
Given the information below for Seger Corporation, compute the expected share price at the end of...
Given the information below for Seger Corporation, compute the
expected share price at the end of 2017 using price ratio analysis.
Assume that the historical average growth rates will remain the
same for 2017. (Do not round intermediate calculations.
Round your answers to 2 decimal places.)
Year
2011
2012
2013
2014
2015
2016
Price
$
91.60
$
97.50
$
96.20
$
93.70
$
115.20
$
130.60
EPS
4.49
5.20
6.00
6.70
7.45
8.45
CFPS
7.72
8.60
8.98
10.57
12.07
13.28...
Given the information below for Seger Corporation, compute the expected share price at the end of...
Given the information below for Seger Corporation, compute the
expected share price at the end of 2017 using price ratio analysis.
Assume that the historical average growth rates will remain the
same for 2017. (Do not round intermediate calculations.
Round your answers to 2 decimal places.)
Year
2011
2012
2013
2014
2015
2016
Price
$
61.10
$
67.00
$
65.70
$
63.20
$
84.70
$
100.10
EPS
3.35
4.06
4.86
5.56
7.85
8.85
CFPS
8.12
8.92
9.22
10.97
12.31
13.44...
Given the information below for Seger Corporation, compute the expected share price at the end of...
Given the information below for Seger Corporation, compute the
expected share price at the end of 2017 using price ratio analysis.
Assume that the historical average growth rates will remain the
same for 2017. (Do not round intermediate calculations.
Round your answers to 2 decimal places.)
Year
2011
2012
2013
2014
2015
2016
Price
$
91.60
$
97.50
$
96.20
$
93.70
$
115.20
$
130.60
EPS
4.49
5.20
6.00
6.70
7.45
8.45
CFPS
7.72
8.60
8.98
10.57
12.07
13.28...
Given the information below for Seger Corporation, compute the expected share price at the end of...
Given the information below for Seger Corporation, compute the
expected share price at the end of 2017 using price ratio analysis.
Assume that the historical average growth rates will remain the
same for 2017. (Do not round intermediate calculations.
Round your answers to 2 decimal places.)
Year
2011
2012
2013
2014
2015
2016
Price
$
94.60
$
100.50
$
99.20
$
96.70
$
118.20
$
133.60
EPS
3.30
4.01
4.81
5.51
7.70
8.70
CFPS
7.97
8.80
9.13
10.82
12.22
13.38...
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