Answered step by step
Verified Expert Solution
Link Copied!

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?

image text in transcribed

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

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Intermediate Financial Management

Authors: Brigham, Daves

10th Edition

978-1439051764, 1111783659, 9780324594690, 1439051763, 9781111783655, 324594690, 978-1111021573

More Books

Students also viewed these Finance questions

Question

=+Males 258 $133,442 $131,090 Females 233 $105,156 $98,525

Answered: 1 week ago