Aggressive marketing campaign that boosts sales
Course:- Business Economics
Reference No.:- EM13891958

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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, price per share of Global's stock is $14 in 2012, 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 at 3.6 million, what is Global's share price in 2013?

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