Question
Need help with these four homework questions! 1, An investor in Amman, Jordan, estimates that next years sales for Amman Intercontinental Hotels, Inc. would amount
Need help with these four homework questions!
1, An investor in Amman, Jordan, estimates that next years sales for Amman Intercontinental Hotels, Inc. would amount to about 150 million Jordanian dinar. The company has 10 million shares outstanding, generates a net profit margin of about 15%, and has a payout ratio of 40%. All figures are expected to hold for next year. Given this information, compute the following: a. Estimated net earnings for next year b. Next years dividends per share c. The expected price of the stock (assuming the P/E ratio is 24.5 times earnings) d. The expected holding period return (latest stock price: 40 Jordanian dinar per share)
2, Taurus Corp. had sales of $35 million in 2016 and is expected to have sales of $51,230,000 for 2017. The companys net profit margin was 4% in 2016 and is expected to increase to 6% by 2017. Estimate the companys net profit for 2017.
3, Sirius Lawnmower Co. has total equity of $450 million and 150 million shares outstanding. Its ROE is 18%. Calculate the companys EPS.
4, Hydra Corporation has total equity of $300 million and 120 million shares outstanding. Its ROE is 20%. The EPS is 25%. Calculate the companys dividends per share (round to the nearest penny).
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