Question: Check my workCheck My Work button is now enabled Item 7 Beagle Beauties engages in the development, manufacture, and sale of a line of cosmetics

Check my workCheck My Work button is now enabled

Item 7

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 2019. Also assume that the firms equity beta is 1.30, the risk-free rate is 2.55 percent, and the market risk premium is 7.0 percent.


Dividends per share	$	2.22
Return on equity		9.50	%
Book value per share	$	18.40

	Earnings			Cash Flow			Sales
2019 value per share	$	5.00		$	6.50		$	25.65
Average price multiple		13.10			9.51			2.45
Forecasted growth rate		13.57	%		11.32	%		7.17	%

Using the PE, P/CF, and P/S ratios, estimate the 2020 share price for Beagle Beauties. (Do not round intermediate calculations. Round your answers to 2 decimal places.)

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!

Check my we Problem 6-27 Constant Perpetual Growth Model (LO1, CFA6) Beagle Beauties engages in the development, manufacture, and sale of a line of cosmetics designed to make your dog look glamorous....

0.4points Return to question Item 3 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...

The answer is not 31.11 btw. Check my work View 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...

How do you do this problem? Use the following information to answer Problem.: Beagle Beauties engages in the development, manufacture, and sale of a line of cosmetics designed to make your dog look...

Beagle Beetles engages in the development, manufacture and sale of a line of cosmetics designed to make your dog look glamorous. Below you will find selected info necessary to compute some valuation...

home / study / business / finance / finance questions and answers / beagle beauties engages in the development, manufacture, and sale of a line of cosmetics designed ... Question: Beagle Beauties...

Evaluate (n + 1)"+1 (n + 3)! (-1)"(n + 1) (2n + 3)n!(2)" (c)

Draw the payoff diagram for the following position: (i) long one 25-strike call, (ii)short two 30-strike calls, (iii) long one 35-strike call. Assume all options have the sameunderlying and the same...

Short - term bank loans are usually made at Blank _ _ _ _ _ _ . Multiple choice question. a fixed or floating rate of interest a floating rate of interest LIBOR a fixed rate of interest

Questions Q1. Write a Python program to retrieve the first and last colors from the following list: color_list = ["red", "green", "white", "blue", "black") Q2. Given the following dictionary,...

7-11. I cant make heads or tails of this trip report. Did you accomplish the tasks you set out to accomplish or only some of them or none of them? I see that you visited four separate clients but...

7-9. Your companys error cost an important business customer a new client; you know it, and your customer knows it. Do you apologize, or do you refer to the incident in a positive light without...

7-8. The latest issue of a local business newspaper names 10 area executives who have exhibited excellent leadership skills in the past year. You are currently searching for a job, and a friend...