Suppose that in 2013, 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 2012.
- a. What is Global's EBIT in 2013?
- b. What is Global's net income in 2013?
- c. If Global's P/E ratio and number of shares outstanding remains unchanged, what is Global's share price in 2013?