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

question 30

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 the per share interest rate charge for the year 2004.

Definitions:

Genetic Influence

The impact of genes inherited from parents on the physical and behavioral characteristics of an individual.

Extraversion-Introversion

A personality dimension reflecting the extent to which an individual is outgoing and enjoys interacting with others versus being introverted and preferring a more solitary lifestyle.

Monozygotic Twins

Identical twins that result from the division of a single fertilized egg and share exactly the same genetic material.

Dizygotic Twins

Also known as fraternal twins, these are two siblings born from separate eggs and fertilized by different sperm cells, sharing about 50% of their DNA.