Answered step by step
Verified Expert Solution
Question
1 Approved Answer
The below produces forecasted annual EPS of $7.08. Identify onenew forecasting assumption (which affects forecasted EPS) that could be different and explain the alternative assumption.
The below produces forecasted annual EPS of $7.08. Identifyonenew forecasting assumption (which affects forecasted EPS) that could be different and explain the alternative assumption. Provide some reasons to support your argument. Based on the new assumption, what is your annual EPS forecast?
INCOME STATEMENT Net sales: Products Services Total net sales Cost of sales: FORECAST EXPLANATION 312,135 Total net sales - Services 97,980 15% based on guidance for Q1 2024 from Q4 call (strong double digit) 410,115 7%, based on guidance for Q1 2024 from Q4 2023 call (flat, despite 7% loss from one less week) Products Services Total cost of sales Gross margin Operating expenses: Research and development Selling, general and administrative Total operating expenses 192,879 Total cost of sales-Services 28,583 Same % sales as 2023 221,462 46% GM, based on guidance for Q1 2024 from Q4 2023 call (45-46%) 188,653 32,009 Same % Sales as 2023 26,677 Same % Sales as 2023 58,686 Operating income 129,967 Other income/(expense), net 0 Assume approx. O, in line with prior years Income before provision for income taxes 129,967 Provision for income taxes Net income 20,795 16%, based on guidance for Q1 2024 from Q4 2023 call 109,172 Earnings per share: Basic Diluted Shares used in computing earnings per share: Basic Diluted Cash dividends declared per share 7.11 7.08 15,350 Assume $80B stock repurchase at $200/share (15.55B shares on balance sheet at end of fiscal 2023) 15,418 Same difference as fiscal 2023 0.96 Based on 4x dividend declared for Q1 2024
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started