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

question 79

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.Estimate the firm's growth rate in sales per share.

• A) 1.5%
• B) 2%
• C) 2.16%
• D) 4.13%
• E) 3.73%

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Definitions:

Learning Through Association

The process of acquiring knowledge or behavior by linking two concepts or experiences together.

Positive Reinforcers

Stimuli that, when presented after a behavior, increase the likelihood of that behavior occurring in the future.

Continuous Reinforcement

Administers a reward each time a desired behavior occurs.

Intermittent Reinforcement

Intermittent reinforcement rewards behavior only periodically.