Monday
March 30, 2015

Homework Help: finance

Posted by chris on Thursday, May 24, 2012 at 11:02am.

An investor estimates that next year’s sales for New World Products should amount to about $75 million. The company has 2.5 million shares outstanding, gener- ates a net profit margin of about 5% , and has a payout ratio of 50% . 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 24.5 times earnings).
d.The expected holding period return (latest stock price: $25/share)

Answer this Question

First Name:
School Subject:
Answer:

Related Questions

Finance 200 - The Landis Corporation had 2008 sales of $100 million. The balance...
Corporate Finance - A company wants to build a new factory for increased ...
Accounting - Appalachian Register, Inc. (ARI) has current sales of $50 million. ...
Finance - Macho Tool Company is going public at $50 net per share to the company...
finance - A company wants to build a new factory for increased capacity. Using ...
Finance - A company wants to build a new factory for increased capacity. Using ...
finance - A company wants to invest in a new advertising program. Using the NPV ...
finance - The Landis Corporation had 2008 sales of $100 million. The balance ...
Finance - Landis Corporation The Landis Corporation had 2008 sales of $100 ...
INB - Last year Rattner Robotics had $5 million in operating income (EBIT). The ...

Members