It is estimated that next year hourly wage rates will increase by 7 percent and productivity will increase by 5 percent. What would you expect to happen to unit labor cost? Discuss how this unit labor cost estimate would influence your estimate of the operating profit margin.
Answer to relevant QuestionsAssume that each of the following changes is independent (i.e., except for this change, all other factors remain unchanged). In each case, indicate what will happen to the earnings multiplier and explain why.a. The return on ...You are given the following estimated per share data related to the S&P Industrials Index for the year 2013:Sales .......... $1,450.00Depreciation ....... 58.00Interest expense ....... 28.00You are also informed that the ...What were the results when industry risk was examined during successive time periods? Discuss the implication of these results for industry analysis.Give an example of a growth company, and discuss why you identify it as such. Based on its P/E, do you think it is a growth stock? Explain.Discuss why you would want to use EVA return on capital rather than absolute EVA to compare two companies or to evaluate a firm's performance over time.
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