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1) (3 pts) Company A just reported EPS of $4.50 and is currently priced at $65 What is the trailing twelve months (ttm) P/E multiple

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1) (3 pts) Company A just reported EPS of $4.50 and is currently priced at $65 What is the trailing twelve months (ttm) P/E multiple for Company A. What would you expect to happen to the (ttm) P/E multiple tomorrow if Company A reports adding 3 new large customers that will significantly increase future earnings? a. b. Circle One ttm P/E multiple should (increase or decrease) What would you expect to happen to the (ttm) P/E multiple tomorrow if the Federal Reserve unexpectedly announced they were raising their benchmark interest rate by 100 basis points c. Circle One ttm P/E multiple should (increase or decrease) (7 pts) Given the following about ABC Corp fill in the estimates for 2018 as it relates to the income Statement: 2) Revenues in 2018 were $100 million. You forecast that revenues will increase by 8% in 2019. The Gross Profit Margin is forecasted to be 25% in 2019. The Operating expenses (SG&A) is forecasted to be S9 million in 2019, The corporate tax rate is assumed to be 26% and there are 5 million shares outstanding. The Company is expected to pay 30% of earnings in the form of a dividend. 2018 $100 million 2019 Revenues: Cost of Goods Sold Gross Profit SG&A Expenses $9 million Operating Income (EBIT) Interest $4 million Earnings before Taxes Taxes Net Income EPS What is your expected operating margin for 2019 What is your expected net profit margin for 2019? if you expect the Company's shares to sell at a P/E multiple (ttm) of 24 at the end of 2019, what is your forecast for the company's stock price at the end of 2019

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