Question
ACME, Inc. reported the following income statement for 2009: Sales $2,500,000 Variable Costs 900,000 Fixed Operating Costs 700,000 EBIT 900,000 Interest Expense 200,000 EBT 700,000
ACME, Inc. reported the following income statement for 2009:
| Sales | $2,500,000 |
| Variable Costs | 900,000 |
| Fixed Operating Costs | 700,000 |
| EBIT | 900,000 |
| Interest Expense | 200,000 |
| EBT | 700,000 |
| Taxes (30%) | 210,000 |
| Net Income | $490,000 |
| Earnings Per Share | $4.90 |
If ACME's sales next year increase by 20%, what will ACME's earnings per share be?
Select one:
a. $6.45
b. $7.14
c. $7.58
d. $5.76
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International Trade Finance
Authors: Indian Institute Of Banking & Finance
1st Edition
9386394723, 978-9386394729
