An analyst gathered the following information about the company: 2021 net sales R10 000 000 2021 net profit margin 5.0% 2022 expected sales growth -15.0% 2022 expected profit margin 5.4% 2022 expected ordinary shares outstanding 120 000 The analyst's estimate of the company's 2022 earnings per share should be closes to...

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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An analyst gathered the following
information about the company:
2021 net sales
R10 000 000
2021 net profit margin
5.0%
2022 expected sales growth
-15.0%
2022 expected profit margin
5.4%
2022 expected ordinary shares
outstanding
120 000
The analyst's estimate of the company's
2022 earnings per share should be closest
to...
a. R2.26
b. R2.72
C. R3.83
d. R4.17
Transcribed Image Text:An analyst gathered the following information about the company: 2021 net sales R10 000 000 2021 net profit margin 5.0% 2022 expected sales growth -15.0% 2022 expected profit margin 5.4% 2022 expected ordinary shares outstanding 120 000 The analyst's estimate of the company's 2022 earnings per share should be closest to... a. R2.26 b. R2.72 C. R3.83 d. R4.17
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