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

question 45

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 industry Total Assets per share for the year 2010.

• A) $450
• B) $565.67
• C) $513.58
• D) $479.07
• E) $385.77

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Definitions:

Uneven Distribution

The unequal allocation of resources, wealth, opportunities, or other elements across a population, region, or among group members.

Information

Data that is processed, organized, or structured in a way that it becomes meaningful or useful to those who receive it.

Adaptive Capacity

The ability of a system, community, or individual to adjust to changes or challenges, enhancing resilience.

Upheaval

A significant disturbance or disruption, often causing chaos or change in a system or society.