Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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Question
Consider the following information that you propose to use to obtain an estimate of year 2004 EPS for the MacLog Company.
Estimated |
||
Year 2019 |
Year 2020 |
|
|
11,000 Billion |
|
GDP growth |
3.5% |
|
Sales per share |
$800 |
|
Operating profit margin |
12% |
|
|
14% |
|
Fixed asset turnover |
2 |
|
Interest rate |
3.5% |
|
Total asset turnover |
0.7 |
|
Debt/Total assets |
45% |
|
Tax rate |
36% |
In addition, a regression analysis indicates the following relationship between growth in sales per share for MacLog, and GDP growth is
%Δ Sales per share = 0.015 + 0.75(%Δ GDP)
Refer to Exhibit 9.6. Calculate the firm's level of Total Assets per share for the year 2020.
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