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

question 76

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 level of debt for the year 2004.

• A) $535.53
• B) $600.75
• C) $637.67
• D) $485.98
• E) $393.72

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Definitions:

Binary Search

A search algorithm that finds the position of a target value within a sorted array by repeatedly dividing in half the portion of the list that could contain the target value.

Unsorted Lists

A collection of items that are not in any particular order.

Sorted

The condition of having elements arranged in a sequential order according to some rule, often numerical or alphabetical.

Selection Sort

Selection sort is an in-place comparison-based sorting algorithm that divides the input list into two parts: the sorted part at the beginning and the unsorted part at the end, systematically finding the minimum or maximum from the unsorted partition and moving it to the sorted one.