Global Corp. initially projected the 20162016 income statement shown in the table LOADING... . Suppose that in 20162016, Global launched an aggressive marketing campaign that boosted 20162016 sales further by 14.4 %14.4%. However, their operating margin fell from 6.45 %6.45% to 4.26 %4.26% Suppose that they had no other income, interest expenses were unchanged, and taxes were the same percentage of pretax income (26 %26%) as in 20152015. a. What was Global's EBIT in 20162016? b. What was Global's income in 20162016? c. If Global's P/E ratio (18.018.0) and number of shares outstanding (3.63.6 million) remained unchanged, what was Global's share price in 20162016? a. What was Global's EBIT in 20162016? Global's EBIT was $nothing million.(Round to two decimal places.)

GLOBAL CORPORATION Income Statement Year ended December 31 (in $ millions)

2016 2015

Net sales 186.7 176.1 Cost of sales -151.8 -147.3 Gross profit 34.9 28.8 Selling, general, and administrative expenses -13.5 -13.0 Research and development -8.2 -7.6 Depreciation and amortization -1.2 -1.1 Operating income 12.0 7.1 Other income 0 0 Earnings before interest and taxes (EBIT) 12.0 7.1 Interest income (expense) -7.7 -4.6 Pretax income 4.3 2.5 Taxes -1.1 -0.6 Net income 3.2 1.9 Earnings per share: Diluted earnings per share: $0.89 $0.86 $0.53 $0.50