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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).

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jeff jeffy answered 6 months ago
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