Question: (Using EBIT-EPS break-even analysis) See Study Problems 15-1 and 15-7. You are now preparing your analysis for Spriggs Plc for your regional head. You have

(Using EBIT-EPS break-even analysis) See Study Problems 15-1 and 15-7. You are now preparing your analysis for Spriggs Plc for your regional head. You have been asked to comment on the likely share price at the end of 2019. The financial reports suggest that there are 8 million shares issued with a par value of 0.50. The audited statements for 2018 have not yet been released and the price to earnings ratio is 12, based on 2017 figures. The directors have projected an operating profit of £6 million for 2019 and estimate that the business will make interest payments of £4 million for 2019. Assuming other variables do not change, and not allowing for any market or real-world systematic additional change (the theoretical world of M&M) what will be the likely percentage change in the share price?

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