Problem:
Consider the following information that you propose to use to obtain an estimate of year 2004 EPS for the MacLog Company:
Year 2003 Estimated yr 2004
GDP 11,000 billion
GDP growth 3.5%
Sales per share $800
Operating profit margin 12%
Depreciations/ Fixed Assets 14%
Fixed Asset turnover 2
Interest rate 3.5%
Total asset turnover 0.7
Debt/ Total Asset 45%
Tax rate 36%
In addition, a regression analyst indicates the following relationship between growth in sales per share for MacLog and GDP growth is: % change sales per share= 0.015+ 0.75 (%change GDP)
Calculate the firm EPS for 2004.