Problem: You are given the following estimated per share data related to the s&p industrial index for the year 2010:
Sales $1,320.00
Depreciation $ 58.00
Interest expense $ 28.00
You are informed that the estimated operation profit margin is 0.16 and the tax rate is 32 percent.
A) Compute the estimated eps for 2010.
B) Assume that a member of the research committee for your Firm feels that it is important to consider a range of Operating profit margin (opm) estimates. Therfore, you are Asked to drive both optimistic and pessimistic eps estimates Using 0.15 and 0.17 for the opm and holding everything else Constant.