Suppose that in 2016, Global launches an aggressive marketing campaign that boosts sales by 17%. However, their operating margin falls from 5.57% to 4.1%. Suppose that they have no other income, interest expenses are unchanged, and taxes are the same percentage of pretax income as in 2015.

a. What is Global's EBIT in2016?

b. What is Global's income in2016?

c. If Global's P/E ratio (25.2) and number of shares outstanding (3.6million) remains unchanged, what is Global's share price in2016?

GLOBAL CONGLOMERATE CORPORATION Income Statement Year Ended December 31 (in $ millions) 2015 186.70 (153.40) 33.30 (13.50) (8.20) (1.20) 10.40 2014 176.10 (147.30) 28.80 (13.00) (7.60) (1.10) 7.10 Total sales Cost of sales Gross Profit Selling, general, and administrative expenses Research and development Depreciation and amortization Operating Income Other income Earnings before interest and taxes (EBIT) Interest income (expense) Pretax income Taxes Net Income Earnings per share: Diluted earnings per share: 10.40 (7.70) 2.70 (0.70) 2.00 $0.556 $0.526 7.10 (4.60) 2.50 (0.60) 1.90 $0.528 $0.500