a-d

An investor estimates that next year's sales for Dursley's Hotels, Inc, should amount to about $103 million. The company has 3.8 million shares outstanding, generates a net profit margin of about 6.9%, and has a payout ratio of 43%. 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 Note. EPS is an intermediate computation not required as an input below. However, round your computation of EPS to at least two decimal places. c. The expected price of the stock (assuming the P/E ratio is 26.5 times earnings) d. The expected holding period return (latest stock price: $37.08 per share) Note. The dividend will be paid during the holding period Note: The dividend will be paid during the holding period a. The estimated net earnings for next year is $ million (Round to three decimal places)