Suppose that in

$2023,$

Global

GLOBAL CONGLOMERATE CORPORATION

Income Statement

Year Ended December $31($in $$$ millions$)$

$20222022$

$20212021$

Total sales

$186\mathrm{.}7$

$176\mathrm{.}1$

Cost of sales

$(153\mathrm{.}4)$

$(147\mathrm{.}3)$

Gross Profit

$33\mathrm{.}3$

$28\mathrm{.}8$

$$Selling$,$ general, and administrative expenses

$(13\mathrm{.}5)$

$(13\mathrm{.}0)$

Research and development

$(8\mathrm{.}2)$

$(7\mathrm{.}6)$

Depreciation and amortization

$(1\mathrm{.}2)$

$(1\mathrm{.}1)$

Operating Income

$10\mathrm{.}4$

$7\mathrm{.}1$

Other income

long dash$$

long dash$$

Earnings Before Interest and Taxes$($EBIT$)$

$10\mathrm{.}4$

$7\mathrm{.}1$

Interest income$($expense$)$

$(7\mathrm{.}7)$

$(4\mathrm{.}6)$

Pretax Income

$2\mathrm{.}7$

$2\mathrm{.}5$

Taxes

$(0\mathrm{.}7)$

$(0\mathrm{.}6)$

Net Income

$2\mathrm{.}0$

$1\mathrm{.}9$

Earnings per$$ share:

$$$$0\mathrm{.}556$

$$$$0\mathrm{.}528$

Diluted earnings per$$ share:

$$$$0\mathrm{.}526$

$$$$0\mathrm{.}500$

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launches an aggressive marketing campaign that boosts sales by

$11\%.$

$$However$,$ their operating margin falls from

$5\mathrm{.}57\%$

to

$4\mathrm{.}30\%.$

Suppose that they have no other$$ income, interest expenses are$$ unchanged, and taxes are the same percentage of pretax income as in

$2022$

a$.$ What is

Global$\text{'}$s

EBIT in

$2023?$

b$.$ What is

Global's

income in

$2023?$

c$.$ If

Global's

$$P$/$E ratio

$(25\mathrm{.}2)$

and number of shares outstanding

$(3\mathrm{.}6$

$$million$)$ remains$$ unchanged, what is

GlobalGlobal$\text{'}$s

share price in

$2023$