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

question 88

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 firm's EPS for the year 2004.

• A) $15.25
• B) $14.66
• C) $17.25
• D) $12.56
• E) $18.57

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Definitions:

C-H Stretch

Refers to the vibration of a carbon-hydrogen bond in infrared spectroscopy, indicating the presence of C-H bonds in a molecular structure.

Stretching Frequency

A measure related to the energy required for bond stretching in molecular vibrations, commonly observed in infrared spectroscopy.

Hexane

A straight-chain alkane with six carbon atoms, commonly used as a non-polar solvent.

IR Spectrum

A graphical representation of infrared light absorption by molecules, used to identify and study chemical substances based on their vibrational transitions.