1) RAM Corp had a total sales of $186.7 mil in yr 2011. In 2012, RAM is assuming an aggressive marketing campaign and sales are projected to be 15% higher. However, the operating margin will fall from 5.57% to 4.5%. Suppose RAM has no other income and interest expenses remain unchanged from year 2011 interest of $7.7 mil. Tax rate is the same as in year 2011 (tax paid in 2011 was $0.7 mil).

Find EBIT 2011

Find the tax ratefor 2011

Find EBIT for yr 2012

Find net income for yr 2012

If there are 3.6 mil outstanding share what is EPS for 2012

RAM has allocated 200,000 stock options to its executives what is the diluted earnings per share

2) Kortin Holdings is a publicly traded company with only two assets: It owns 60% of Tim's Donuts chain and 100% of the Caribou hockey team.Suppose the market value of Horton Holdings is $160 million, and the market value of the entire Tim's Donuts chain (which is also publicly traded) is $120 million.What is the market value of the Caribou hockey team?