Estimated net earnings for next year

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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:

-Estimated net earnings for next year

-Next year's dividends per share

-The expected price of the stock(assuming the P/E ratio is 24.5 times earnings)

-The expected holding period return ( latest stock price: Jordanian Dinar per share)

Reference no: EM132722496

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