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Given the information below for Seger Corporation, compute the expected share pr

ID: 2649036 • Letter: G

Question


Given the information below for Seger Corporation, compute the expected share price at the end of 2014 using price ratio analysis. (Do not round intermediate calculations. Round your answers to 2 decimal places. Omit the "$" sign in your response.)

Year   2008   2009   2010   2011   2012   2013
Price   $   97.60   $   103.50   $   102.20   $   99.70   $   121.20   $   136.60
EPS      2.80      3.51      4.31      5.01      7.95      8.95
CFPS      8.22      9.00      9.28      11.07      12.37      13.48
SPS      52.60      57.60      57.00      60.50      71.70      79.70

      
Using P/E ratio   $   
Using P/CFPS ratio   $   
Using P/S ratio   $   

Explanation / Answer

Ratios are as below

2008

2009

2010

2011

2012

2013

Price/EPS

34.86

29.49

23.71

19.90

15.25

15.26

Price/CFPS

11.87

11.50

11.01

9.00

9.80

10.13

Price/SPS

1.86

1.80

1.79

1.65

1.69

1.71

The prices are to be divided by respective EPS, CFPS, and SPS for getting the above related ratios.

2008

2009

2010

2011

2012

2013

Price/EPS

34.86

29.49

23.71

19.90

15.25

15.26

Price/CFPS

11.87

11.50

11.01

9.00

9.80

10.13

Price/SPS

1.86

1.80

1.79

1.65

1.69

1.71

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