You Are Attempting to Estimate Expected Earnings Per Share for a Major

question 62

Multiple Choice

You are attempting to estimate expected earnings per share for a major stock market series.You have determined an appropriate estimate for sales per share.Which of the following methods can be used to estimate the profit margin?

• A) Base the estimate on recent trends of net profit margins.
• B) Estimate the net before tax (NBT) profit margin along with a tax estimate.
• C) Incorporate an estimate an operating profit margin, defined as earnings before interest, taxes, and depreciation.
• D) All of the above methods are appropriate.
• E) None of the above methods are appropriate.

---

Definitions:

Communicate About Products

The act of sharing information and details about products to educate, engage, or influence potential customers.

Attractiveness

A characteristic or feature of something that draws interest or appreciation from others.

Requester

An individual or entity asking for something to be provided or done, often within the context of services or transactions.

Affinity

A natural liking or attraction to a person, place, thing, or idea, often leading to a sense of connection or loyalty.