10 - 12) Delta Corporation is trading at $18 per share and had Earnings of $1.00 last year and expects to have earnings of $1.25 this year.

(10) Compute Delta Corporations forward P/E.

(11) Compute Delta Corporations trailing P/E.

(12) Compute the estimated share price for Delta Corporation if its peers are valued at 22x Forward P/E.

(13 - 15) Assume that Delta corporation is expected to grow by 15% each year and pays a 3% dividend.

(13) Compute Delta Corporations forward PEG.

(14) Compute Delta Corporations trailing PEGY.

(15) Which of the multiples above (P/E. PEG or PEGY) you would recommend using. Why?

(16) Assume that Epsilon Corporation is currently trading $175 per share, is expected to have sales of $100,000,000 next year and that they have 800,000 shares of stock outstanding. Determine Epsilon Corporation's Price/Sales ratio (PSR).

(17) Determine Gamma Corporation's Price/Book ratio. Assets = $250 million Liabilities = $100 million Outstanding shares = 20million Stock price = $15 per share

(18) Determine Sigma Corporation's Price/Cash-Flow ratio. OCF = $75 million Outstanding shares = 10 million Stock price = $20 per share

(19 - 21) Security analysts following Tau Inc., use a simplified income statement method of forecasting. Assume that sales last year were $18 million and are expected to grow by 8 percent over the next two years. The after-tax profit margin is projected at 6 percent this year and 6.5 percent in the next year. The number of shares outstanding is anticipated to be 1,000,000 this year and 950,000 next year. Project earnings per share for the next two years. Round to two places to the right of the decimal point throughout the problem. Year Sales

Year	Sales (19)	NPM	Earnings (20)	Shares	EPS (21)
1
2

(19) NPM Earnings

(20) Shares EPS

(21) 1 2

(22 - 25) Use the following information to compare the P/E, PSR, and P/CF for Amazon and GameStop. Amazon GameStop Price Per Share $ 3,206.00 $ 247.00 Expected Earnings $ 26,341,000,000 $ (235,664,100) Sales $ 419,000,000,000 $ 5,090,000,000 CF $ 66,064,000,000 $ (123,700,000) Shares 497,000,000 70,770,000 Amazon GameStop

Amazon	GameStop
Price Per Share	$ 3,206.00
Expected Earnings	$ 26,341,000,000
Sales	$ 419,000,000,000
CF	$ 66,064,000,000
Shares	497,000,000

P/E (22)
PSR (23)
P/CF (24)

(25) Discuss your results in (22, 23 and 24 above).