Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

eagle Beauties engages in the development, manufacture, and sale of a line of cosmetics designed to make your dog look glamorous. Below you will find

eagle 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 2021. Also assume that the firms equity beta is 1.40, the risk-free rate is 2.75 percent, and the market risk premium is 7 percent.
Dividends per share $ 2.04
Return on equity 9.50%
Book value per share $ 17.05
Earnings Cash Flow Sales
2021 value per share $ 5.00 $ 6.60 $ 25.65
Average price multiple 13.109.422.36
Forecasted growth rate 13.48%11.41%7.34%
Using the PE, P/CF, and P/S ratios, estimate the 2022 share price for Beagle Beauties.
Note: Do not round intermediate calculations. Round your answers to 2 decimal places.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The Lifestyle Investor

Authors: Justin Donald, Ryan Levesque, Mike Koenigs

1st Edition

1636800130, 978-1636800134

More Books

Students also viewed these Finance questions

Question

Describe the job youd like to be doing five years from now.

Answered: 1 week ago

Question

So what disadvantages have you witnessed? (specific)

Answered: 1 week ago