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Accounting

Problem:

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.

Required:

Question 1: What is Global's EBIT in 2013?

Question 2: What is Global's net income in 2013?

Question 3: If Global's P/E ratio and number of shares outstanding remains unchanged, what is Global's share price in 2013?

Note: Please provide through step by step calculations.

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M91165369

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