Question
Your firm, where you are the new Chief Financial Officer (CFO), has had an interesting year. For the entire year, you have been operating under
Your firm, where you are the new Chief Financial Officer (CFO), has had an interesting year. For the entire year, you have been operating under the pressure of meeting a major EPS growth challenge. Prior to the start of the year, your Chief Operating Officer (CEO) committed to the investment community that your EPS would move from $2.20 in 2013 to $2.42 in 2014. This was based on target earnings after interest and taxes of $365 million. This is up from actual earnings of $330 million in 2013. The good news is that you are now at mid-year and you have projected that you will either hit the target or beat it by a small amount. Wall Street has been watching closely and really likes what they are seeing. As a result, your stock price has moved from a year-end $22 per share to $30 per share as of June 30th. Nearly all of the increase has occurred over the past two weeks. However, both Wall Street.
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