Global Corp. initially projected the 2019 income statement shown in the table . Suppose that in 2019, Global launched an aggressive marketing campaign that boosted 2019 sales further by 14.1%. However, their operating r 5.56% to 4.49% 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? a. What was Global's EBIT in 2019? Global's EBIT was $ million. (Round to two decimal places.) b. What was Global's income in 2019? Net income was $ million. (Round to two decimal places.) 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 Corp. initially projected the 2019 income statement shown in the table . Suppose that in 2019, Global launched an aggressive marketing campaign that boosted 2019 sales further by 14.1%. However, their operating r 5.56% to 4.49% 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? a. What was Global's EBIT in 2019? Global's EBIT was $ million. (Round to two decimal places.) b. What was Global's income in 2019? Net income was $ million. (Round to two decimal places.) 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?
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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![Global Corp. initially projected the 2019 income statement shown in the table E. Suppose that in 2019, Global launched an aggressive marketing campaign that boosted 2019 sales further by 14.1%. However, their operating margin fell from
5.56% to 4.49% 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?
a. What was Global's EBIT in 2019?
Global's EBIT was $
million. (Round to two decimal places.)
b. What was Global's income in 2019?
Net income was $
million. (Round to two decimal places.)
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 $. (Round to the nearest cent.)](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F96e0847f-4973-4b99-ac1e-7e94417321c7%2F6fd2a3db-5bfa-4a3a-9d32-1e3afcbe0b21%2F2urgv8_processed.png&w=3840&q=75)
Transcribed Image Text:Global Corp. initially projected the 2019 income statement shown in the table E. Suppose that in 2019, Global launched an aggressive marketing campaign that boosted 2019 sales further by 14.1%. However, their operating margin fell from
5.56% to 4.49% 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?
a. What was Global's EBIT in 2019?
Global's EBIT was $
million. (Round to two decimal places.)
b. What was Global's income in 2019?
Net income was $
million. (Round to two decimal places.)
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 $. (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
- 153.4
- 147.3
Gross profit
33.3
28.8
- 13.5
- 13.0
Selling, general, and administrative expenses
Research and development
- 8.2
- 7.6
Depreciation and amortization
- 1.2
- 1.1
Operating income
10.4
7.1
Othe
ncome
Earnings before interest and taxes (EBIT)
Interest income (expense)
10.4
7.1
- 7.7
- 4.6
Pretax income
2.7
2.5
Taxes
- 0.7
- 0.6
Net income
2.0
1.9
Earnings per share:
Diluted earnings per share:
$0.56
$0.53
$0.53
$0.50](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F96e0847f-4973-4b99-ac1e-7e94417321c7%2F6fd2a3db-5bfa-4a3a-9d32-1e3afcbe0b21%2Fde8u60o_processed.png&w=3840&q=75)
Transcribed Image Text:GLOBAL CORPORATION
Income Statement
Year ended December 31 (in $ millions)
2019
2018
Net sales
186.7
176.1
Cost of sales
- 153.4
- 147.3
Gross profit
33.3
28.8
- 13.5
- 13.0
Selling, general, and administrative expenses
Research and development
- 8.2
- 7.6
Depreciation and amortization
- 1.2
- 1.1
Operating income
10.4
7.1
Othe
ncome
Earnings before interest and taxes (EBIT)
Interest income (expense)
10.4
7.1
- 7.7
- 4.6
Pretax income
2.7
2.5
Taxes
- 0.7
- 0.6
Net income
2.0
1.9
Earnings per share:
Diluted earnings per share:
$0.56
$0.53
$0.53
$0.50
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