Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Question $3 - Relative Valuation (Comparables) Assume that you have forecast next year's sales for Gullfoyle Fasteners will be $4,600,000. The firm will have 39000

image text in transcribed
Question $3 - Relative Valuation (Comparables) Assume that you have forecast next year's sales for Gullfoyle Fasteners will be $4,600,000. The firm will have 39000 shares outstanding of common stock. rou also forecast the Common Size income Statement percentages ( of Sales) for next year (below). The stock is currently $98 per share. a. What is your forecast Net income for next year? b. What is the Earnines per Share (EPS)? c. What is the Sales per Share? c. What is the forecast P/E Ratio for the stock? d. What is the forecast P/S for the stock? e. If you believe the stock warrants a P/E of 13 , what do you belleve the target price should be for the stock? f. Is the stock a buy, sell, hold

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

Case Studies In Finance

Authors: Robert F. Bruner

4th Edition

0072338628, 978-0072338621

More Books

Students also viewed these Finance questions

Question

List the impacts of analytics on decision making.

Answered: 1 week ago

Question

What are the different techniques used in decision making?

Answered: 1 week ago