Question
Bills Bakery has current earnings per share of $2.58. Current book value is $4.40 per share. The appropriate discount rate for Bills Bakery is 10
Bills Bakery has current earnings per share of $2.58. Current book value is $4.40 per share. The appropriate discount rate for Bills Bakery is 10 percent. Calculate the share price for Bills Bakery if earnings grow at 2.9 percent forever. (Do not round intermediate calculations. Round your answer to 2 decimal places.)
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 | $ | 81.90 | $ | 87.80 | $ | 86.50 | $ | 84.00 | $ | 105.50 | $ | 120.90 |
EPS | 3.20 | 3.91 | 4.71 | 5.41 | 7.40 | 8.40 | ||||||
CFPS | 7.67 | 8.56 | 8.95 | 10.52 | 12.04 | 13.26 | ||||||
SPS | 64.00 | 69.00 | 68.40 | 71.90 | 83.10 | 91.10 |
Using P/E Ratio
Using P/CF Ratio
Using P/S Ratio
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