Problem 2-30 Suppose that in 2019, Global launched an aggressive marketing campaign that boosted sales by 15%. However, their operating margin fell from 5.57% to 4.50%. Suppose that they have no other income, interest expenses are unchanged, and taxes are the same percentage of pretax income as in 2018. a. What is Global's EBIT in 2019? b. What is Global's income in 2019? c. If Global's P/E ratio and number of shares outstanding remains unchanged, what is Global's share price in 2019? 2019 Growth rate in sales Operating margin New sales 15.00% 4.50% a. EBIT b. Other income Interest expense Pretax income Taxes Net income c. 2019 (old) P/E ratio 2019 Share price 18.00 Problem 2-31 You are analyzing the leverage of two firms and you note the following (all values in millions of dollars): Firm A Firm B Debt $500 $80 Book Equity Market Equity $300 $400 $35 $40 Operating Income $100 $8 Interest Expense $50 $7 a. What is the market debt-to-equity ratio of each firm? b. What is the book debt-to-equity ratio of each firm? c. What is the interest coverage ratio of each firm? d. Which firm will have more difficulty meeting its debt obligations? Firm A Firm B a. Market debt-to-equity b. Book debt-to-equity c. Interest coverage ratio d. Problem 2-32 For 2018, Walmart and Target had the following information (all values are in millions of dollars): Walmart Target Sales $482,130 $73,785 Cost of Goods Sold Accounts Receivable $360,984 $5,624 $51,997 $779 Inventory $44,469 $8,601 a. What is each company's accounts receivable days? b. What is each company's inventory turnover? c. Which company is managing its accounts receivable and inventory more efficiently? Walmart Target a. Accounts receivable days b. Inventory turnover C