12. Alpha company made sales of PKR 100 Mn in 2019 and expecting that company’s top line will increase by 10% in 2020. The management has controlled its overhead and operating expenses very well in the given year which will result in net margin of 15% . The company has 1 million outstanding shares and the management is expecting to pay 40% as cash dividend at the end of year. Based on the given data, calculate following: ● Net sales ● Net profit ● Earnings per share (EPS) ● Dividend per share 13. Refer Q12, P/E ratio is estimated to be 8 times for the year. Based on the provided data calculate the share price of the Alpha stock ?

12. Alpha company made sales of PKR 100 Mn in 2019 and expecting that company’s top line will increase by 10% in 2020. The management has controlled its overhead and operating expenses very well in the given year which will result in net margin of 15% . The company has 1 million outstanding shares and the management is expecting to pay 40% as cash dividend at the end of year. Based on the given data, calculate following: ● Net sales ● Net profit ● Earnings per share (EPS) ● Dividend per share 13. Refer Q12, P/E ratio is estimated to be 8 times for the year. Based on the provided data calculate the share price of the Alpha stock ?

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter4: Financial Planning And Forecasting

Section: Chapter Questions

Problem 7P

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