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Beagle Beauties engages in the development, manufacture, and sale of a line of cosmetics designed to...
Beagle Beauties engages in the development, manufacture, and sale of a line of cosmetics designed to make your dog look glamorous. Below you will find selected information necessary to compute some valuation estimates for the firm. Assume the values provided are from year-end 2019. Also assume that the firm’s equity beta is 1.20, the risk-free rate is 2.40 percent, and the market risk premium is 9.0 percent.
| Dividends per share | $ | 2.16 | |
| Return on equity | 11.50 | % | |
| Book value per share | $ | 17.95 | |
| Earnings | Cash Flow | Sales | ||||||||
| 2019 value per share | $ | 5.00 | $ | 6.50 | $ | 25.65 | ||||
| Average price multiple | 13.10 | 9.48 | 2.42 | |||||||
| Forecasted growth rate | 13.54 | % | 11.35 | % | 7.04 | % | ||||
The required return is 13.20 percent. Use the clean surplus
relationship to calculate the share price for Beagle Beauties with
the residual income model. (Do not round intermediate
calculations. Round your answer to 2 decimal places.)
Share Price:
Solutions
jeff jeffy answered 2 years agoRelated Solutions
Beagle Beauties engages in the development, manufacture, and sale of a line of cosmetics designed to...
Beagle Beauties engages in the development, manufacture, and
sale of a line of cosmetics designed to make your dog look
glamorous. Below you will find selected information necessary to
compute some valuation estimates for the firm. Assume the values
provided are from year-end 2019. Also assume that the firm’s equity
beta is 1.20, the risk-free rate is 2.40 percent, and the market
risk premium is 9.0 percent. Dividends per share $ 2.16 Return on
equity 11.50 % Book value per...
Beagle Beauties engages in the development, manufacture, and sale of a line of cosmetics designed to...
Beagle Beauties engages in the development, manufacture, and
sale of a line of cosmetics designed to make your dog look
glamorous. Below you will find selected information necessary to
compute some valuation estimates for the firm. Assume the values
provided are from year-end 2019. Also assume that the firm’s equity
beta is 1.60, the risk-free rate is 2.50 percent, and the market
risk premium is 9.0 percent.
Dividends per share
$
2.20
Return on equity
11.50
%
Book value per...
Beagle Beauties engages in the development, manufacture, and sale of a line of cosmetics designed to...
Beagle Beauties
engages in the development, manufacture, and sale of a line of
cosmetics designed to make your dog look glamorous. Below you will
find selected information necessary to compute some valuation
estimates for the firm. Assume the values provided are from
year-end 2015. Also assume that the firm’s equity beta is 1.40, the
risk-free rate is 2.20 percent, and the market risk premium is 6.4
percent.
a. Using these values,
estimate the current share price of Beagle Beauties stock...
Abbott Laboratories (ABT) engages in the discovery, development, manufacture, and sale of a line of health...
Abbott Laboratories (ABT) engages in the discovery, development,
manufacture, and sale of a line of health care and pharmaceutical
products. Below you will find selected information from Value Line.
Use the Value Line estimated 2012 figures as the actual year-end
figures for the company. The beta reported was .9 and the risk-free
rate was 3.70 percent. Assume a market risk premium of 7 percent.
The high and low share price each year were: 2008 2009 2010 2011
2012 High $...
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Question: Beagle Beauties engages in the development,
manufacture, and sale of a line of cosmetics designed...
Beagle Beauties engages in the development, manufacture, and
sale of a line of cosmetics designed to make your dog look
glamorous. Below you will find selected information necessary to
compute some valuation estimates for the...
Nealon Energy Corporation engages in the acquisition, exploration, development, and production of natural gas and oil...
Nealon Energy Corporation engages in the acquisition,
exploration, development, and production of natural gas and oil in
the continental United States. The company has grown rapidly over
the last 5 years as it has expanded into horizontal drilling
techniques for the development of the massive deposits of both gas
and oil in shale formations. The company's operations in the
Haynesville shale (located in northwest Louisiana) have been so
significant that it needs to construct a natural gas gathering and
processing...
Nealon Energy Corporation engages in the acquisition, exploration, development, and production of natural gas and oil...
Nealon Energy Corporation engages in the acquisition,
exploration, development, and production of natural gas and oil in
the continental United States. The company has grown rapidly over
the last 5 years as it has expanded into horizontal drilling
techniques for the development of the massive deposits of both gas
and oil in shale formations. The company's operations in the
Haynesville shale (located in northwest Louisiana) have been so
significant that it needs to construct a natural gas gathering and
processing...
Nealon Energy Corporation engages in the acquisition, exploration, development, and production of natural gas and oil...
Nealon Energy Corporation engages in the acquisition,
exploration, development, and production of natural gas and oil in
the continental United States. The company has grown rapidly over
the last 5 years as it has expanded into horizontal drilling
techniques for the development of the massive deposits of both gas
and oil in shale formations. The company's operations in the
Haynesville shale (located in northwest Louisiana) have been so
significant that it needs to construct a natural gas gathering and
processing...
Nealon Energy Corporation engages in the acquisition, exploration, development, and production of natural gas and oil...
Nealon Energy Corporation engages in the acquisition,
exploration, development, and production of natural gas and oil in
the continental United States. The company has grown rapidly over
the last 5 years as it has expanded into horizontal drilling
techniques for the development of the massive deposits of both gas
and oil in shale formations. The company's operations in the
Haynesville shale (located in northwest Louisiana) have been so
significant that it needs to construct a natural gas gathering and
processing...
Nealon Energy Corporation engages in the acquisition, exploration, development, and production of natural gas and oil...
Nealon Energy Corporation engages in the acquisition,
exploration, development, and production of natural gas and oil in
the continental United States. The company has grown rapidly over
the last 5 years as it has expanded into horizontal drilling
techniques for the development of the massive deposits of both gas
and oil in shale formations. The company's operations in the
Haynesville shale (located in northwest Louisiana) have been so
significant that it needs to construct a natural gas gathering and
processing...
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