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

question 77

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 year 2004 EBITDA per share.

• A) $95.05
• B) $87.15
• C) $112.56
• D) $104.73
• E) $99.96

---

Definitions:

Maximin Criterion

A decision-making principle that suggests choosing the option with the greatest minimum payoff, particularly under uncertainty, to ensure the best worst-case outcome.

Population Trends

Patterns of change in the size, composition, and distribution of human populations over time.

Dwelling Type

Dwelling type refers to the classification of residential units based on their structure, design, and functionality, such as apartments, houses, or townhomes.

State of Nature

The actual condition or reality of a situation which decision makers do not control and must consider in their planning.