Exhibit 8-1
USE THE FOLLOWING INFORMATION FOR THE NEXT PROBLEM(S)

question 37

Multiple Choice

Exhibit 8-1
USE THE FOLLOWING INFORMATION FOR THE NEXT PROBLEM(S)
Assume that you are an analyst for the Canadian auto parts industry. Consider the following information that you propose to use to obtain an estimate of year 2010 EPS for the Canadian auto parts industry $\begin{array}{lcc}& \text { Year 2009 } & \text { Estimated Year 2010} \\\hline \text { Personal consumption expenditures } & \$ 6,800 \text {billion } \\\text {Personal consumption expenditures growth } &&1.5 \%\\\text {Industry Sales per share } &\$ 525\\\text { Industry Operating profit margin } &&15 \% \\\text {Industry Depreciation/Fixed Assets } &&8.25 \% \\\text { Industry Fixed asset turnover } &&3 \\\text {Interest rate } &&6 \% \\\text {Industry Total asset turnover } &&1.2 \\\text {Industry Debt/Total assets } &&45 \% \\\text { Industry Tax rate} &&36 \%\end{array}$
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(%D PCE)
-Refer to Exhibit 8-1. Estimate the industry sales per share for the year 2010.

• A) $574.9
• B) $600.0
• C) $585.03
• D) $625
• E) $550

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Definitions:

Free Will

The concept that individuals have the ability to make choices that are not predetermined by past events, emphasizing personal autonomy and ethical responsibility.

Career Adaptability

Readiness and resources to cope with repeated career decisions and challenges.

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The level of a person's readiness and competence in making career-related decisions.

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