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    Operating Proft Margin and EPS.

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    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.

    © BrainMass Inc. brainmass.com June 3, 2020, 11:08 pm ad1c9bdddf
    https://brainmass.com/business/accounting/operating-proft-margin-eps-264799

    Solution Summary

    The solution examines operating profit margins and EPS.

    $2.19

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