Exhibit 13 In Addition a Regression Analysis Indicates the Following Relationship Between

question 36

Multiple Choice

Exhibit 13.1
Use the Information Below for the Following Problem(S)
Assume that you are an analyst for the U.S. Autoparts Industry. Consider the following information that you propose to use to obtain an estimate of year 2002 EPS for the U.S. Autoparts Industry:
$\begin{array}{lrr}\begin{array}{l}\\\\\text{Personal consumption expenditures}\\\text{Personal consumption expenditures}\\ \text{growth}\\\text{Industry Sales per share}\\\text{Industry Operating profit margin}\\\text{Industry Depreciation/Fixed Assets}\\\text{Industry Fixed asset turnover}\\\text{Interest rate}\\\text{Industry Total asset turnover}\\\text{Industry Debt/Total assets}\\\text{Industry Tax rate}\\\end{array}\\begin{array}{r}\\\text{Year 2003}\\\hline\text{\$6,800 Billion}\\\\\\ \$ 525 \\\\\\\\\\\\\\\\end{array}\\begin{array}{r}Estimated\\\text{Year 2004}\\\hline\\ 1.5 \% \\\\\\ 15 \% \\8.25 \% \\3\\6 \% \\1.2 \\45 \% \\36\%\end{array}\\end{array}$

In addition a regression analysis indicates the following relationship between growth in industry sales per share and personal consumption expenditures (PCE) growth is
%D Sales per share = 0.02 + 1.5(%DPCE)
-Refer to Exhibit 13.1.Calculate the industry EBT per share for the year 2004.

• A) $53.29
• B) $67.89
• C) $68.75
• D) $59.63
• E) $57.49

---

Definitions:

Planning Phase

The initial stage in a project or endeavor where strategies are developed and objectives are defined.

Résumé

A document presented by job applicants summarizing their personal information, educational background, and work experience to potential employers.

Reader

An individual who reads or scrutinizes written materials, or a device that interprets printed or digital texts and codes.

Informational Needs

The gap between the information an individual has and the information they require to accomplish a task or satisfy curiosity.