GLOBAL CONGLOMERATE CORPORATIONIncome StatementYear Ended December 31 (in $ millions)Total salesCost of salesGross ProfitSelling, general, and administrative expensesResearch and developmentDepreciation and amortizationOperating IncomeOther incomeEarnings before interest and taxes (EBIT)Interest income (expense)Pretax incomeTaxesNet IncomeEarnings per share:Diluted earnings per share:2015186.70(153.40)33.30(13.50)(8.20)(1.20)10.4010.40(7.70)2.70(0.70)2.00$0.556$0.5262014176.10(147.30)28.80(13.00)(7.60)(1.10)7.107.10(4.60)2.50(0.60)1.90$0.528$0.500 Suppose that in 2016, Global launches an aggressive marketing campaign that boosts sales by 18%. However, their operating margin falls from 5.57% to 4.7%. Suppose that they have no other income, interest expensesare unchanged, and taxes are the same percentage of pretax income as in 2015. (See Table.)a. What is Global's EBIT in 2016?b. What is Global's income in 2016?c. If Global's P/E ratio (25.2) and number of shares outstanding (3.6 million) remains unchanged, what is Global's share price in 2016?a. What is Global's EBIT in 2016?Global's EBIT in 2016 is $ million. (Round to two decimal places.)b. What is Global's income in 2016?million. (Round to two decimal places.)c. If Global's P/E ratio (25.2) and number of shares outstanding (3.6 million) remains unchanged, what is Global's share price in 2016?Global's share price is $(Round to the nearest cent.)Global's net income in 2016 is $

Ratio analysis used identify the business performance of the company.It is used to measure financial…

Answered: Suppose that in 2016, Global launches…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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