Suppose that in 2011, Global launched an aggressive marketing campaign that boosted sales by 15%. However, their
Question:
Suppose that in 2011, Global launched an aggressive marketing campaign that boosted sales by 15%. However, their operating margin fell from 5.57% to 4.50%. Suppose that they have no other income, interest expenses are unchanged, and taxes are the same percentage of pretax income as in 2010.
a.
What is Global's EBIT in 2011?
b.
What is Global's income in 2011?
c.
If Global's P/E ratio and number of shares outstanding remains unchanged, what is Global's share price in 2011?
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Related Book For
Fundamentals of Corporate Finance
ISBN: 978-0133400694
1st canadian edition
Authors: Jonathan Berk, Peter DeMarzo, Jarrad Harford, David A. Stangeland, Andras Marosi
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