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

question 90

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 interest rate charge for the year 2004.

• A) $18.74
• B) $14.72
• C) $30.07
• D) $13.76
• E) $28.59

---

Definitions:

Communication Process

The method by which information is transferred from one person or group to another, encompassing several elements including sender, message, medium, receiver, and feedback.

Specialized Form

Specialized form refers to a distinct variation or adaptation of something that is designed for a specific purpose or function.

Binding Arbitration

A legal process in which a dispute is resolved by an arbitrator, with the decision being final and enforceable by law.

Collaborate

To collaborate means to work jointly on an activity or project to achieve a shared goal or outcome.