Global Corp had a total sale of $186.7 million in year 2011. In 2012 Global is assuming an aggressive marketing campaign and sales are projected to be 15% higher. However, the operating margin will fall from 5.57% to 4.5%. Suppose Global has no other income and interest expenses remain unchanged from year 2011 interest of $7.7 mil. Tax rate is the same as in year 2011 (tax paid in 2011 was $0.7 mil).

a. Find EBIT 2011 (Hint: Revenue* operating. margin)

b. Find the tax rate for year 2011 (Hint: find tax paid/ (EBIT2011 - interest) *100%) 

c. Find EBIT for year 2012.

d. Find net income for year 2012. 

e. If there are 3.6 mil outstanding share, what is EPS for 2012?

 f. Global has allocated 200,000 stock options to its executives.

What are the diluted earnings per share?

Answer rating: 100% (QA)

a EBIT 2011 1867 million 557 104 million b Tax rate 2011 07 million 104 millio... View the full answer