Beagle Beauties engages in the development, manufacture, and sale of a line of cosmetics designed to...

Transcribed Image Text:

Beagle Beauties engages in the development, manufacture, and sale of a line of cosmetics designed to make your dog look glamorous. Below you will find selected information necessary to compute some valuation estimates for the firm. Assume the values provided are from year-end 2021. Also assume that the firm's equity beta is 1.20, the risk-free rate is 2.40 percent, and the market risk premium is 6.0 percent. Dividends per share Return on equity Book value per share $ 2.36 8.50% 2021 value per share Average price multiple Forecasted growth rate $ 19.45 Earnings $ 5.00 13.10 13.64% Cash Flow $ 6.40 9.58 11.25% Sales $ 25.65 2.52 7.38% Using the PE, P/CF, and P/S ratios, estimate the 2022 share price for Beagle Beauties. Note: Do not round intermediate calculations. Round your answers to 2 decimal places. Using PE ratio Using P/CF ratio Using P/S ratio Share Price Beagle Beauties engages in the development, manufacture, and sale of a line of cosmetics designed to make your dog look glamorous. Below you will find selected information necessary to compute some valuation estimates for the firm. Assume the values provided are from year-end 2021. Also assume that the firm's equity beta is 1.20, the risk-free rate is 2.40 percent, and the market risk premium is 6.0 percent. Dividends per share Return on equity Book value per share $ 2.36 8.50% 2021 value per share Average price multiple Forecasted growth rate $ 19.45 Earnings $ 5.00 13.10 13.64% Cash Flow $ 6.40 9.58 11.25% Sales $ 25.65 2.52 7.38% Using the PE, P/CF, and P/S ratios, estimate the 2022 share price for Beagle Beauties. Note: Do not round intermediate calculations. Round your answers to 2 decimal places. Using PE ratio Using P/CF ratio Using P/S ratio Share Price

Answer rating: 100% (QA)

To estimate the 2022 share price for Beagle Beauties using the PE PCF and PS ratios we can use the g... View the full answer