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This years sales for XYZ Co. were $22 million. Sales are expected to increase by 5% next year. Historically, the firms net profit margin has

This years sales for XYZ Co. were $22 million. Sales are expected to increase by 5% next year. Historically, the firms net profit margin has been 7% and its P/E at 15. The firm maintains a 25% dividend payout ratio. The stock is currently at $112 and there are 165,000 shares outstanding. Calculate the expected EPS, DPS and stock price for next year. If you bought the stock today and sold it one year at the expected price, calculate your HPR.

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