Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. an investor estimates that next year's sales for d

An investor estimates that next year's sales for Dursley's Hotels, Inc., should amount to about...

80.2K

Verified Solution

Question

Finance

image

An investor estimates that next year's sales for Dursley's Hotels, Inc., should amount to about $95 million. The company has 4.8 million shares outstanding, generates a net profit margin of about 9.2%, and has a payout ratio of 45%. All figures are expected to hold for next year. Given this information, compute the following. a. Estimated net earnings for next year. b. Next year's dividends per share. c. The expected price of the stock (assuming the P/E ratio is 21.2 times earnings). d. The expected holding period return (latest stock price: $31.61 per share). a. The estimated net earnings for next year is $ x million. (Round to three decimal places.) b. The dividends per share for next year is $ x. (Round to the nearest cent.) c. Assuming the P/E ratio is 21.2 times earnings, the expected price of the stock is $ x. (Round to the nearest cent.) d. The expected holding period return is x%. (Round to two decimal places.)

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Statistics
1.2K views

1 A proud mother tells you that today her child is 1 209 600 s...

Finance
1.2K views

The Campbell Company is considering adding a robotic paint sprayer to its production line. The sprayer's base...

Physics
1.2K views

A car is fited with a device which produces sound of frequency 50 Hz There...

Basic Math
1.2K views

Which one of the sets given below is the power set of the set 7...

Basic Math
1.2K views

Solve the equation. Write the solution set with the exact values given in terms of...

Calculus
1.2K views

Given the following linear system of ODE:V?' = 4y?+2y?V?' = 10y?-4y?what is the type of...

Accounting
1.2K views

Determine the amount of total assets that would appear on the December 31, Year 1,...

Accounting
1.2K views

El costo de conversin por unidad es igual a $6. Los costos totales de materiales...

Accounting
1.2K views

Product Producers, LLC (PP) manufactures a widget that is sold around the world. PP has...

Accounting
1.2K views

The net assets of Jamal company at the end of 2019 was 500,000. The company...

Accounting
1.2K views

Rayya Company purchases a machine for $168,000 on January 1, 2020. Straight-line depreciation is taken...

Finance
1.2K views

Assume you are selling pizzas at $5 per pizza. Your fixed costs (rent, salaries, and...