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(8 pts) Given the following about ABC Corp fill in the estimates for 2018 as it relates to the Income Statement: 2) Revenues in 2017

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(8 pts) Given the following about ABC Corp fill in the estimates for 2018 as it relates to the Income Statement: 2) Revenues in 2017 were $100 million. You forecast that revenues will increase by 7% in 2018. The Gross Profit Margin is forecasted to be 25% in 2018. The Operating expenses (SG&A) is forecasted to be $9 million in 2018. The corporate tax rate is assumed to be 26% and there are 5 million shares outstanding. The Company is expected to pay 20% of earnings in the form of a dividend. 2017 $100 million x 7 2018 Revenues: Cost of Goods Sold Gross Profit SG&A Expenses $9 million Operating Income (EBIT) Interest $4 million Earnings before Taxes 13.75% " :4.575 ) --.125 Taxes Net Income o.175 EPS What is your expected operating margin for 2018? .. What is your expected net profit margin for 2018? If you expect the Company's shares to sell at a P/E multiple of 24 at the end of 2018, what is your forecast for the -17sq.5% company's stock price at the end of 2018? 54.1 2035

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