![Problem 8-27 Stock Valuation and PE (LO2] You have found the following historical information for the Daniela Company over th](http://img.homeworklib.com/questions/094f3890-7375-11ea-8697-17c914dbab48.png?x-oss-process=image/resize,w_560)
Homework Answers
| P/E Ratio = Stock Price/EPS | |||
| Stock Price | EPS | P/E Ratio | |
| Year 1 | 51.6 | 2.68 | 19.25373134 |
| 2 | 60.92 | 2.8 | 21.75714286 |
| 3 | 70.14 | 3.08 | 22.77272727 |
| 4 | 63.75 | 3.27 | 19.49541284 |
| Average P/E Ratio | 20.81975358 | ||
| Target Stock Price = EPS*P/E Ratio | |||
| 78.29361 |
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Problem 8-27 Stock Valuation and PE (LO2] You have found the following historical information for the...
You have found the following historical information for the Daniela Company over the past four years:...
You have found the following historical information for the Daniela Company over the past four years: Stock price EPS Year 1 $52.50 2.80 Year 2 $62.12 2.92 Year 3 $71.34 3.20 Year 4 $65.25 3.45 Earnings are expected to grow at 21 percent for the next year. Using the company's historical average PE as a benchmark, what is the target stock price one year from today? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g.,...
You have found the following historical information for the Daniela Company over the past four years:...
You have found the following historical information for the Daniela Company over the past four years: Year 1 Year 2 Year 3 Year 4 Stock price $ 51.45 $ 60.72 $ 69.94 $ 63.50 EPS 2.66 2.78 3.06 3.24 Earnings are expected to grow at 14 percent for the next year. Using the company’s historical average PE as a benchmark, what is the target stock price one year from today? (Do not round intermediate calculations and round your answer to...
You have found the following historical information for the Daniela Company: Year 1 Year 2 Year...
You have found the following historical information for the Daniela Company: Year 1 Year 2 Year 3 Year 4 Stock price EPS $63.25 $71.94 $83.43 $88.27 3.15 3.35 3.60 3.85 Earnings are expected to grow at 7 percent for the next year. Using the company's historical average PE as a benchmark, what is the target stock price in one year? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g. 32.16.) Target price
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You have found the following historical information for the Daniela C mpany Stock price $46.48 2.47...
You have found the following historical information for the Daniela C mpany Stock price $46.48 2.47 $61.43 2.53 $65 39 2.7 $63.59 2.69 EPS Eamings are expected to grow at 8 percent for the next year. Required: What is the PE ratio for each year? (Do not round intermodiate calculations. Round your answers to 2 decimal places (e.g. 32.16)-) PE ratio Year 1 Year 2 Year 3 Year 4 What is the average PE ratio? (Do not round intermediate calculations....
You have found the following historical information for DEF Company: Year 1 Year 2 Year 3...
You have found the following historical information for DEF Company: Year 1 Year 2 Year 3 Year 4 Stock Price $45.27 $52.2 $56.65 $59.24 EPS $2.08 $2.42 $2.82 $3.72 Earnings are expected to grow at 9 percent for the next year. Using the company's historical average PE as a benchmark, what is the target stock price in one year? Answer to two decimals.
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In practice, a common way to value a share of stock when a company pays dividends is to value the dividends over the next five years or so, then find the "terminal" stock price using a benchmark PE o. Suppose a company just paid a dividend of $1.17. The dividends are expected to grow at 12 percent over the next five years. The company has a payout ratio of 40 percent and a benchmark PE of 19. The required return...
In practice, a common way to value a share of stock when a company pays dividends...
In practice, a common way to value a share of stock when a company pays dividends is to value the dividends over the next five years or so, then find the “terminal” stock price using a benchmark PE ratio. Suppose a company just paid a dividend of $1.21. The dividends are expected to grow at 16 percent over the next five years. The company has a payout ratio of 40 percent and a benchmark PE of 23. The required return...
If you look at stock prices over any year, you will find a high and low...
If you look at stock prices over any year, you will find a high and low stock price for the year. Instead of a single benchmark PE ratio, we now have a high and low PE ratio for each year. We can use these ratios to calculate a high and a low stock price for the next year. Suppose we have the following information on a particular company over the past four years: Year 1 Year 2 Year 3 Year...
Saved Chapter 8 Homework Domergue Corp. currently has an EPS of $3.76, and the benchmark PE...
Saved Chapter 8 Homework Domergue Corp. currently has an EPS of $3.76, and the benchmark PE for the company is 21. Earnings are expected to grow at 5.1 percent per year. Suped a. What is your estimate of the current stock price? (Do not round Intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. What is the target stock price in one year? (Do not round intermediate calculations and round your answer to 2 decimal places,...
You have found the following historical information for the Daniela Company over the past four years: Stock price EPS Year 1 $52.50 2.80 Year 2 $62.12 2.92 Year 3 $71.34 3.20 Year 4 $65.25 3.45 Earnings are expected to grow at 21 percent for the next year. Using the company's historical average PE as a benchmark, what is the target stock price one year from today? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g.,...
You have found the following historical information for the Daniela Company: Year 1 Year 2 Year 3 Year 4 Stock price EPS $63.25 $71.94 $83.43 $88.27 3.15 3.35 3.60 3.85 Earnings are expected to grow at 7 percent for the next year. Using the company's historical average PE as a benchmark, what is the target stock price in one year? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g. 32.16.) Target price
You have found the following historical information for the Daniela C mpany Stock price $46.48 2.47 $61.43 2.53 $65 39 2.7 $63.59 2.69 EPS Eamings are expected to grow at 8 percent for the next year. Required: What is the PE ratio for each year? (Do not round intermodiate calculations. Round your answers to 2 decimal places (e.g. 32.16)-) PE ratio Year 1 Year 2 Year 3 Year 4 What is the average PE ratio? (Do not round intermediate calculations....
You have found the following historical information for DEF Company: Year 1 Year 2 Year 3 Year 4 Stock Price $45.27 $52.2 $56.65 $59.24 EPS $2.08 $2.42 $2.82 $3.72 Earnings are expected to grow at 9 percent for the next year. Using the company's historical average PE as a benchmark, what is the target stock price in one year? Answer to two decimals.
In practice, a common way to value a share of stock when a company pays dividends is to value the dividends over the next five years or so, then find the "terminal" stock price using a benchmark PE o. Suppose a company just paid a dividend of $1.17. The dividends are expected to grow at 12 percent over the next five years. The company has a payout ratio of 40 percent and a benchmark PE of 19. The required return...
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