Global Corp. initially projected the

2019

income statement shown in the table

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. Suppose that in

2019,

Global launched an aggressive marketing campaign that boosted

2019

sales further by

14.9%.

However, their operating margin fell from

6.44%

to

4.04%

Suppose that they had no other income, interest expenses were unchanged, and taxes were the same percentage of pretax income

(26%)

as in

2018.

a. What was Global's EBIT in

2019?

b. What was Global's income in

2019?

c. If Global's P/E ratio

(18.0)

and number of shares outstanding

(3.6

million) remained unchanged, what was Global's share price in

2019?

Question content area bottom

Part 1

a. What was Global's EBIT in

2019?

Part 2

Global's EBIT was

$enter your response here

million.(Round to two decimal places.)

Part 3

b. What was Global's income in

2019?

Net income was

$enter your response here

million.(Round to two decimal places.)

Part 4

c. If Global's P/E ratio

(18.0)

and number of shares outstanding

(3.6

million) remained unchanged, what was Global's share price in

2019?

Global's share price in

2019

was

$enter your response here.

(Round to the nearest cent.)

GLOBAL CORPORATION Income Statement Year ended December 31 (in $ millions)
	2019	2018
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
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