Question
In: Finance
An investor estimates that next year's sales for Dursley's Hotels, Inc., should amount to about $96...
An investor estimates that next year's sales for Dursley's Hotels, Inc., should amount to about $96 million. The company has 4.5 million shares outstanding, generates a net profit margin of about 8.8%, and has a payout ratio of 42%. 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 24.9 times earnings).
d. The expected holding period return (latest stock price: $32.87 per share).
Solutions
jeff jeffy answered 7 months agoRelated Solutions
PART 1) An investor estimates that next year's sales for Dursley's Hotels, Inc., should amount to...
PART 1) An investor estimates that next year's sales for
Dursley's Hotels, Inc., should amount to about 105 Million.The
company has 3.1 million shares outstanding, generates a net profit
margin of about 8.1%, and has a payout ratio of 41%. 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...
Financial forecasting-% of sales) Tulley Appliances Inc. projects next year's sales to be $19.6 million. Current...
Financial forecasting-% of sales) Tulley Appliances Inc.
projects next year's sales to be $19.6 million. Current sales are
$15.4 million, based on current assets of $5.1 million and fixed
assets of $5.2 million. The firm's net profit margin is 4.9% after
taxes. Tulley forecasts that its current assets will rise in direct
proportion to the increase in sales, but that its fixed assets will
increase by only $109,000. Currently, Tulley has $1.5 million in
acct. payable (which vary directly with...
Colonels uses a traditional cost system and estimates next year's overhead will be $180,000, with the...
Colonels uses a traditional cost system and estimates next
year's overhead will be $180,000, with the estimated cost driver of
180,000 direct labor hours. It manufactures three products and
estimates the following costs:
Small
Medium
Large
Units
31,000
10,000
3,000
Direct Material Cost
$6
$9
$8
Direct Labor Hours per Unit
3
6
9
If the labor rate is $25 per hour, what is the per-unit cost of
each product?
Small
Medium
Large
Cost per unit
$
$
$
Custom's...
(Financial forecastinglong dashpercent of sales) Next year's sales for Cumberland Mfg. are expected to be $14.95...
(Financial forecastinglong dashpercent of sales) Next year's
sales for Cumberland Mfg. are expected to be $14.95 million.
Current sales are $13 million, based on current assets of $4.33
million and fixed assets of $6.50 million. The firm's net profit
margin is 3 percent after taxes. Cumberland estimates that its
current assets will rise in direct proportion to the increase in
sales, but that its fixed assets will increase by only $200,000.
Currently, Cumberland has $1.50 million in accounts payable
(which...
(Financial forecastinglong dashpercent of sales) Next year's sales for Cumberland Mfg. are expected to be $15.60...
(Financial forecastinglong dashpercent of sales) Next year's
sales for Cumberland Mfg. are expected to be $15.60 million.
Current sales are $13 million, based on current assets of $4.33
million and fixed assets of $6.50 million. The firm's net profit
margin is 5 percent after taxes. Cumberland estimates that its
current assets will rise in direct proportion to the increase in
sales, but that its fixed assets will increase by only $200,000.
Currently, Cumberland has $1.50 million in accounts payable
(which...
The table contains the Sales estimates for the next year. The Purchases are 64% of Sales....
The table contains the Sales estimates for the next year. The
Purchases are 64% of Sales. Purchases are paid in the following
month. The administrative expenses of $10,196 are paid each month
Tax expenses of $39,003 are paid in March, June, September, and
December each year. Rent expenses of $79,725 are paid in June and
December. What is the cash outflow for March?
Jan- 59,595 Feb- 60,120 Mar- 20,032 Apr-68,137 May- 59,595 Jun-
60,120 Jul- 68,137 Aug-20,032 Sep-59,595 Oct-20,032 Nov-60,120...
The table contains the Sales estimates for the next year. The Purchases are 22% of Sales....
The table contains the Sales estimates for the next year. The
Purchases are 22% of Sales. Purchases are paid in the following
month. The administrative expenses of $5,777 are paid each month
Tax expenses of $70,307 are paid in March, June, September, and
December each year. Rent expenses of $20,971 are paid in June and
December. What is the cash outflow for December? Enter your answer
rounded off to two decimal points. Do not enter $ or comma in the...
Wildcat Inc has estimates sales (in millions) for the next four months as follows: January: $230...
Wildcat Inc has estimates sales (in millions) for the next four
months as follows:
January: $230
February: $195
March: $270
April: $290
Gross sales in November were $250, in December were $200, and
May are projected at $250 million. Wildcat has a 60-day collection
period. Wildcat’s purchases from suppliers in a month are equal to
55 percent of the next month’s forecasted sales, and suppliers are
normally paid in 30 days. Wages, taxes, and other expenses run
about 30 percent...
Here are next year's projections for a firm you are valuing: Sales are expected to be...
Here are next year's projections for a firm you are valuing:
Sales are expected to be $100 million.
Gross margin is forecasted to be 30%.
COGS and SG&A are $90 million, of which depreciation is $10
million.
The firm is very inefficient in collecting its bills from
customers. It is expected that:
Industrial customers (70% of sales) will take 100 days to pay their
bills.
Retail chains (30% of sales) make cash sales.
The firm expects to turn over its...
(Financial forecasting—percent of sales) Next year's sales for Cumberland Mfg. are expected to be $16.10 million....
(Financial
forecasting—percent
of
sales)
Next year's sales for Cumberland Mfg. are expected to be
$16.10
million. Current sales are
$14
million, based on current assets of
$4.67
million and fixed assets of
$7.00
million. The firm's net profit margin is
3
percent after taxes. Cumberland estimates that its current
assets will rise in direct proportion to the increase in sales,
but that its fixed assets will increase by only $200,000.
Currently, Cumberland has
$1.50
million in accounts payable (which vary...
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