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Suppose that in 2016, Global launches an aggressive marketing campaign that boosts sales by 15%. However, their operating margin falls from 5.57% to 4.50%. Suppose
Suppose that in 2016, Global launches an aggressive marketing campaign that boosts sales by 15%. However, their operating margin falls 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 2015.
a) What is Globals EBIT in 2016?
b) What is Globals net income in 2016?
c) If Globals P/E ratio and number of shares outstanding remains unchanged, what is Globals share price in 2016?
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