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USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM Consider the following information that you propose to use to obtain an estimate of year 2004 EPS
USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM Consider the following information that you propose to use to obtain an estimate of year 2004 EPS for the MacLog Company. Estimated Year 2019 Year 2020 GDP 11,000 Billion GDP growth 3.5% Sales per share $800 Operating profit margin 12% Depreciation/Fixed Assets 14% Fixed asset turnover 2 Interest rate 3.5% Total asset turnover 0.7 Debt/Total assets 45% Tax rate 36% In addition, a regression analysis indicates the following relationship between growth in sales per share for MacLog, and GDP growth is % Sales per share = 0.015 + 0.75(% GDP) Refer to Exhibit 9.6. Calculate the per share interest rate charge for the year 2020. a. $14.72 b. $30.07 c. $18.74 d. $13.76 e. $28.59
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