Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

For the following questions, find the expected stock price using the table below per price ratio analyses: QUESTION #1. Find the expected stock price for

For the following questions, find the expected stock price using the table below per price ratio analyses:

image text in transcribed

QUESTION #1. Find the expected stock price for year 2017 using the p/e ratio

QUESTION #2. Find the expected stock price for year 2017 using the p/cf ratio

QUESTION #3. Find the expected stock price for year 2017 using the p/s ratio

- Formulas for the 1,2 and 3 question:

historical P/E ratio x projected EPS

historical P/CF ratio x projected CFPS

historical P/S ratio x projected SPS

I need help with this please

\begin{tabular}{l|rrrrrr} year & 2011 & 2012 & 2013 & 2014 & 2015 & 2016 \\ \hline price & $94.50 & $100.40 & $99.10 & $97.90 & $121.50 & $136.80 \\ eps & 4.34 & 5.05 & 5.22 & 6.06 & 7.00 & 8.00 \\ cfps & 7.27 & 8.24 & 8.71 & 10.12 & 11.8 & 13.1 \\ sps & 52.6 & 58.52 & 57.9 & 60.69 & 71.6 & 78.7 \\ \hline dividend & $1.00 & $1.08 & $1.17 & $1.25 & $1.35 & $1.40 \end{tabular} \begin{tabular}{l|rrrrrr} year & 2011 & 2012 & 2013 & 2014 & 2015 & 2016 \\ \hline price & $94.50 & $100.40 & $99.10 & $97.90 & $121.50 & $136.80 \\ eps & 4.34 & 5.05 & 5.22 & 6.06 & 7.00 & 8.00 \\ cfps & 7.27 & 8.24 & 8.71 & 10.12 & 11.8 & 13.1 \\ sps & 52.6 & 58.52 & 57.9 & 60.69 & 71.6 & 78.7 \\ \hline dividend & $1.00 & $1.08 & $1.17 & $1.25 & $1.35 & $1.40 \end{tabular}

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_2

Step: 3

blur-text-image_3

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

Securities Trader Qualification Examination Series 57 Study Guide

Authors: Philip Martin Mccaulay

1st Edition

979-8363665240

More Books

Students also viewed these Finance questions