What is globals share price


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?

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Accounting Basics: What is globals share price
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