Security Analysts Following the Witczak Corporation Use a Simplified Income-Statement

question 86

Short Answer

Security analysts following the Witczak Corporation use a simplified income-statement method of forecasting. Assume that current sales are $30 million, and are expected to grow by 10.5% in year 1 and 2. The after-tax profit margin is projected at 7% in year 1, and 7.2% in year 2. The number of shares outstanding is anticipated to be 450,000 for year 1, and 500,000 for year 2. Calculate the project earnings per share for the next two years.

---

Definitions:

Pallets of Ice Cream

Large, flat transport structures loaded with multiple packages or containers of ice cream, used for efficient handling and storage.

Act Diplomatically

The skill of handling affairs without causing offense, often by being tactful, sensitive, and prudent in communication and decision-making.

Veracity of Claims

The truthfulness and accuracy of statements or promises made, especially regarding product benefits or services in advertising.

Nonverbal Selling Technique

Sales strategies that rely on body language, gestures, and facial expressions rather than spoken words to influence buyers.