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

question 59

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 industry year 2004 EBITDA per share.

• A) $95.05
• B) $89.15
• C) $92.56
• D) $94.73
• E) $86.23

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Definitions:

Fimbriae

Short, hair-like structures on the surface of some bacteria that help in attachment to host tissues and in the transfer of genetic material.

Electron Microscope

A microscope capable of producing high-resolution, highly magnified images through the use of an electron beam (rather than light). Transmission electron microscopes (TEMs) produce images of thin sections; scanning electron microscopes (SEMs) produce images of surfaces.

Actinomycetes

A group of Gram-positive bacteria known for their soil-dwelling habits and significant role in the decomposition of organic materials.

Peptidoglycan

A complex polymer found in the cell walls of most bacteria, providing structural strength and shape.