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 ex re unchanged, and taxes are the same percentage of pretax income as in 2015. (See Table:-) What is Global's EBIT in 2016? . What is Global's income in 2016? . 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? What is Global's EBIT in 2016? Slobal's EBIT in 2016 is $ million. (Round to two decimal places.) . What is Global's income in 2016? Global's net income in 2016 is $ million. (Round to two decimal places.) . 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.)
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 ex re unchanged, and taxes are the same percentage of pretax income as in 2015. (See Table:-) What is Global's EBIT in 2016? . What is Global's income in 2016? . 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? What is Global's EBIT in 2016? Slobal's EBIT in 2016 is $ million. (Round to two decimal places.) . What is Global's income in 2016? Global's net income in 2016 is $ million. (Round to two decimal places.) . 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.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question

Transcribed Image Text:GLOBAL CONGLOMERATE CORPORATION
Income Statement
Year Ended December 31 (in $ millions)
Total sales
Cost of sales
Gross Profit
Selling, general, and administrative expenses
Research and development
Depreciation and amortization
Operating Income
Other income
Earnings before interest and taxes (EBIT)
Interest income (expense)
Pretax income
Taxes
Net Income
Earnings per share:
Diluted earnings per share:
2015
186.70
(153.40)
33.30
(13.50)
(8.20)
(1.20)
10.40
10.40
(7.70)
2.70
(0.70)
2.00
$0.556
$0.526
2014
176.10
(147.30)
28.80
(13.00)
(7.60)
(1.10)
7.10
7.10
(4.60)
2.50
(0.60)
1.90
$0.528
$0.500

Transcribed Image Text: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 expenses
are 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 $
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