question archive An investor in Amman, Jordan, estimates that next year's sales for Amman Intercontinental Hotels, Inc

An investor in Amman, Jordan, estimates that next year's sales for Amman Intercontinental Hotels, Inc

Subject:FinancePrice:2.86 Bought5

An investor in Amman, Jordan, estimates that next year's 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:

  1. Estimated net earnings for next year
  2. Next year's dividends per share
  3. The expected price of the stock(assuming the P/E ratio is 24.5 times earnings)
  4. The expected holding period return ( latest stock price: Jordanian Dinar per share)

 

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