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

question 29

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. Calculate the industry year 2010 EBITDA per share.

• A) $95.05
• B) $89.15
• C) $92.56
• D) $94.73
• E) $86.23

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Definitions:

Psychotherapy

A form of treatment for mental disorders that involves talking with a psychiatric professional to explore and overcome problematic thoughts, feelings, and behaviors.

Psychiatrists

Medical doctors specialized in the diagnosis, treatment, and prevention of mental health disorders, often employing medication as part of treatment.

1950s

The decade spanning from the year 1950 to 1959, often noted for its post-war cultural and technological advancements.

Labor Force Participation

The percentage of the working-age population that is actively engaged in or seeking employment.