Question
1) Given the information below for HooYah! Corporation, compute the expected share price at the end of 2011 using price ratio analysis. (Round your answer
1)
Given the information below for HooYah! Corporation, compute the expected share price at the end of 2011 using price ratio analysis. (Round your answer to 2 decimal places. Omit the "$" sign in your response.)
Year | 2005 | 2006 | 2007 | 2008 | 2009 | 2010 |
Price | 21.00 | 57.50 | 129.00 | 206.00 | 96.00 | 26.50 |
EPS | -5.00 | -4.29 | -1.70 | -.55 | .04 | .05 |
CFPS | -12.00 | -9.50 | -2.70 | -.10 | .33 | .20 |
SPS | 18.00 | 26.50 | 24.60 | 28.10 | 31.60 | 34.95 |
Share Price
P/E=
P/CF=
P/S=
2)
JJ Industries will pay a regular dividend of $0.85 per share for each of the next four years. At the end of the four years, the company will also pay out a $79 per share liquidating dividend, and the company will cease operations. If the discount rate is 9 percent, what is the current value of the companys stock? (Round your answer to 2 decimal places. Omit the "$" sign in your response.
Price | $ |
4)
Joker stock has a sustainable growth rate of 12 percent, ROE of 16 percent, and dividends per share of $3. If the P/E ratio is 18.5, what is the value of a share of stock? (Round your answer to 2 decimal places. Omit the "$" sign in your response.)
Share of stock | $ |
5)
You are going to value Lauryns Doll Co. using the FCF model. After consulting various sources, you find that Lauryn has a reported equity beta of 1.6, a debt-to-equity ratio of 0.4, a tax rate of 40 percent, and net income last year of $41 million. Assume a risk-free rate of 5 percent and a market risk premium of 12 percent. Included in net income was a depreciation expense of $5.1 million. In addition, Lauryn paid out $7.5 million in capital expenditures. Assume the company's FCF is expected to grow at a rate of 4 percent into perpetuity. What is the value of the firm? (Enter your answer in millions. Round your answer to 2 decimal places. Omit the "$" sign in your response.)
Firm value | $ million |
8)Given the information below for StartUp.Com, compute the expected share price at the end of 2011 using price ratio analysis. (Round your answer to 2 decimal places. Omit the "$" sign in your response.)
Year | 2007 | 2008 | 2009 | 2010 |
Price | N/A | 80.12 | 107.32 | 116.18 |
EPS | N/A | -7.70 | -.51 | -4.04 |
CFPS | N/A | -11.20 | -9.40 | -4.93 |
SPS | N/A | 10.10 | 13.60 | 17.10 |
Share price $
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