Suppose that in 2023, Global launched an aggressive marketing campaign that boosted sales by 15%. However, their
Question:
Suppose that in 2023, 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 had no other income, interest expenses were unchanged, and taxes were the same percentage of pretax income as in 2022.
a. What was Global’s EBIT in 2023?
b. What was Global’s income in 2023?
c. If Global’s P/E ratio and number of shares outstanding remained unchanged, what was Global’s share price in 2023?
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Step by Step Answer:
a To calculate Globals EBIT in 2023 we can use the following formula EBIT Sales Operating Margin Let...View the full answer
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Related Book For 
Fundamentals Of Corporate Finance
ISBN: 9780137852581
6th Edition
Authors: Jonathan Berk, Peter DeMarzo, Jarrad Harford
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