Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

What is the share price used the P/E ratio? I think I'm supposed to find the average of some values. Problem 6-23 Price Ratio Analysis

What is the share price used the P/E ratio?
image text in transcribed
I think I'm supposed to find the average of some values.
Problem 6-23 Price Ratio Analysis for Internet Companies (L04, CFA8) Given the information below for HooYahl Corporation, compute the expected share price at the end of 2017 using price ratio analysis. Assume that the historical average growth rates will remain the same for 2017 (Do not round intermediate calculations. Round your answers to 2 decimal places. Exclude negative annual P/E and P/CFPS ratios from the average P/E and average P/CFPS ratio calculations. When computing annual growth rates, use a positive sign on the annual rate of change if the per share value increased in value and use a negative sign on the annual rate of change if the per share value deceased in value.) Year Price EPS 2011 $8.00 4. 2012 $44.5e -3.30 2013 $116.ee -1.80 2014 $ 193.82 -0.55 2015 583.00 0.04 2016 $13.50 0.06 0. CFPS SPS -6.50 13.5e -2.80 18.12 -0.25 20.30 0.03 23.30 s.ee Share price Using P/E ratio Using PICF ratio Using P/S ratio $ S 223.29 132 29

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

World Finance Since 1914

Authors: Paul Einzig

1st Edition

0415539471, 978-0415539470

More Books

Students also viewed these Finance questions