Exhibit 12 In Addition a Regression Analysis Indicates the Following Relationship Between

question 47

Multiple Choice

Exhibit 12.6
Use the Information Below for the Following Problem(S)
Consider the following information that you propose to use to obtain an estimate of year 2004 EPS for the MacLog Company.
$\begin{array}{lrr}\begin{array}{l}\\\\\text{GDP}\\\text{GDP growth}\\\text{Sales per share}\\\text{Operating profit margin}\\\text{Depreciation/Fixed Assets}\\\text{Fixed asset turnover}\\\text{Interest rate}\\\text{Total asset turnover}\\\text{Debt/Total assets}\\\text{Tax rate}\\\end{array}\\begin{array}{r}\\\text{Year 2003}\\\hline\text{11,000 Billion}\\\\ \$ 800 \\\\\\\\\\\\\\\\end{array}\\begin{array}{r}Estimated\\\text{Year 2004}\\\hline\\ 3.5 \% \\\\ 12 \% \\ 14 \% \\2\\3.5 \% \\ 0.7 \\45 \% \\36\%\end{array}\\end{array}$
In addition a regression analysis indicates the following relationship between growth in sales per share for MacLog and GDP growth is
%D Sales per share = 0.015 + 0.75(%∆GDP)
-Refer to Exhibit 12.6.Calculate the per share EBIT for the year 2004.

• A) $35.53
• B) $41.65
• C) $55.89
• D) $65.14
• E) $75.10

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Definitions:

Type A Personalities

Individuals who exhibit a competitive, driven, and highly organized characteristic often linked to higher stress levels.

Heart Attacks

Medical emergencies caused by the blockage of blood flow to the heart muscle, often resulting in damage.

Hostile People

Individuals who consistently exhibit anger, aggression, or resentment in their interactions with others.

Power Motive

The drive to influence people or control resources, often analyzed as a personality trait.