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Exhibit 13 In Addition a Regression Analysis Indicates the Following Relationship Between

question 75

Multiple Choice

Exhibit 13.1
Use the Information Below for the Following Problem(S)
Assume that you are an analyst for the U.S. Autoparts Industry. Consider the following information that you propose to use to obtain an estimate of year 2002 EPS for the U.S. Autoparts Industry:
$\begin{array}{lrr}\begin{array}{l}\\\\\text{Personal consumption expenditures}\\\text{Personal consumption expenditures}\\ \text{growth}\\\text{Industry Sales per share}\\\text{Industry Operating profit margin}\\\text{Industry Depreciation/Fixed Assets}\\\text{Industry Fixed asset turnover}\\\text{Interest rate}\\\text{Industry Total asset turnover}\\\text{Industry Debt/Total assets}\\\text{Industry Tax rate}\\\end{array}\\begin{array}{r}\\\text{Year 2003}\\\hline\text{\$6,800 Billion}\\\\\\ \$ 525 \\\\\\\\\\\\\\\\end{array}\\begin{array}{r}Estimated\\\text{Year 2004}\\\hline\\ 1.5 \% \\\\\\ 15 \% \\8.25 \% \\3\\6 \% \\1.2 \\45 \% \\36\%\end{array}\\end{array}$

In addition a regression analysis indicates the following relationship between growth in industry sales per share and personal consumption expenditures (PCE) growth is
%D Sales per share = 0.02 + 1.5(%DPCE)
-Refer to Exhibit 13.1.Calculate personal consumption expenditures for the year 2004.

Definitions:

Interstitial Osmolarity

The concentration of solutes in the interstitial fluid, affecting the movement of water between cells and the extracellular fluid.

Countercurrent Exchange

A mechanism that allows for efficient transfer of heat or matter between fluids flowing in opposite directions.

Glomerulus

The glomerulus is a network of capillaries located at the beginning of a nephron in the kidney, where the filtration of blood takes place, serving as the first step in urine formation.

Distal Tubule

The distal tubule is a portion of the kidney nephron that functions in ion transport and acid-base balance.