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2. Spretto Corp. has the following information in 2018 (all in $ million): Total sales: 186.7 Cost of sales: 153.4 Selling, general, and administrative expenses:
2. Spretto Corp. has the following information in 2018 (all in $ million): Total sales: 186.7 Cost of sales: 153.4 Selling, general, and administrative expenses: 13.5 Research and development: 8.2 Depreciation and amortization: 1.2 Interest expense: 7.7 Spretto has the marginal tax rate of 26% and has 2 million shares that are trading for a price of $10 per share. Suppose that in 2019, the company adopts an aggressive marketing strategy, which boosts sales by 10%, yet reducing the operating margin from 5.57% to 5.00%. Spretto has no other income, and its interest expenses are unchanged. For the same marginal tax rate of 26%, what is Spretto's share price in 2019 given that its P/E ratio and number of shares outstanding also remain unchanged
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