Question: Given the information for Seger Corporation, compute the expected share price at the end of 2017 using price ratio analysis. Assume that the historical average

Given the information for Seger Corporation, compute the expected share price at the end of 2017 using price ratio analysis. Assume that the historical average growth rates will remain the same for 2017.

Given the information for Seger Corporation, compute the expected share price at

QUESTION #1) Find the expected stock price using : 1. p/e ratio, 2. p/cf ratio, and 3. p/s ratio, respectively.

QUESTION #2) Compute the expected share price at the end of 2017 using the perpetual growth method of dividend discount model.

Assume the market risk premium is 7.5%, T-bill yeld 3%, and the projected beta of the firm is 1.10. *hint: you'd need to find the growth rate for dividends to apply the model

2011 2012 2013 2014 2015 2016 $94.50 $100.40 $99.10 $97.90 $121.50 $136.80 year price eps cfps 4.34 5.05 5.22 6.06 7.00 8.00 7.27 8.24 8.71 10.12 11.8 13.1 52.6 58.52 57.9 60.69 71.6 78.7 sps dividend $1.00 $1.08 $1.17 $1.25 $1.35 $1.40

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