1) Given the information below for HooYah! Corporation, compute the expected sha
ID: 2613319 • Letter: 1
Question
1)
Given the information below for HooYah! Corporation, compute the expected share price at the end of 2011 using price ratio analysis. (Round your answer to 2 decimal places. Omit the "$" sign in your response.)
57.50
Share Price
P/E=
P/CF=
P/S=
2)
JJ Industries will pay a regular dividend of $0.85 per share for each of the next four years. At the end of the four years, the company will also pay out a $79 per share liquidating dividend, and the company will cease operations. If the discount rate is 9 percent, what is the current value of the company’s stock? (Round your answer to 2 decimal places. Omit the "$" sign in your response.
5)
You are going to value Lauryn’s Doll Co. using the FCF model. After consulting various sources, you find that Lauryn has a reported equity beta of 1.6, a debt-to-equity ratio of 0.4, a tax rate of 40 percent, and net income last year of $41 million. Assume a risk-free rate of 5 percent and a market risk premium of 12 percent. Included in net income was a depreciation expense of $5.1 million. In addition, Lauryn paid out $7.5 million in capital expenditures. Assume the company's FCF is expected to grow at a rate of 4 percent into perpetuity. What is the value of the firm? (Enter your answer in millions. Round your answer to 2 decimal places. Omit the "$" sign in your response.)
8)Given the information below for StartUp.Com, compute the expected share price at the end of 2011 using price ratio analysis. (Round your answer to 2 decimal places. Omit the "$" sign in your response.)
Share price $
Year 2005 2006 2007 2008 2009 2010 Price 21.0057.50
129.00 206.00 96.00 26.50 EPS -5.00 -4.29 -1.70 -.55 .04 .05 CFPS -12.00 -9.50 -2.70 -.10 .33 .20 SPS 18.00 26.50 24.60 28.10 31.60 34.95Explanation / Answer
2)
Year Cash flow PVF @9% Present value 1 0.85 0.917 0.78 2 0.85 0.842 0.72 3 0.85 0.772 0.66 4 79.85 0.708 56.57 Share price = 58.72Related Questions
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