An analyst forecasts that sales per share for a stock market index will be $180 per share, depreciation $8 per share and interest $4 per share. She forecasts an operating margin of 15% and a marginal tax rate of 34%. What is her forecast of earnings per share for the index?
The correct answer was B) $9.90.
Sales |
$180.00 |
|
EBITDA |
27.00 |
($180.00)(0.15) |
Depreciation |
8.00 |
|
EBIT |
19.00 |
|
Interest |
4.00 |
|
EBT |
15.00 |
|
Taxes |
5.10 |
(15.00)(0.34) |
EPS |
$9.90 |
| |