Question
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
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 2.10 percent, and the market risk premium is 6.2 percent.
Dividends per share$2.40Return on equity9.00%Book value per share$17.20
EarningsCash FlowSales2015 value per share$5.30$6.75$25.80Average price multiple13.369.842.91Forecasted growth rate13.54%11.56%7.52%
What is the sum of the shares prices when you estimate the2016 share price for Beagle Beauties using the P/E, P/CF, and P/S ratios?
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