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Suppose that in 2019​, Global launches an aggressive marketing campaign that boosts sales by 17 %....

Suppose that in 2019​, Global launches an aggressive marketing campaign that boosts sales by 17 %. ​However, their operating margin falls from 5.57 % to 4.6 %. Suppose that they have no other​ income, interest expenses are​ unchanged, and taxes are the same percentage of pretax income as in 2018. ​ (See Table 2.2 LOADING...​.) a. What is​ Global's EBIT in 2019​? b. What is​ Global's income in 2019​? c. If​ Global's P/E ratio ​(25.2​) and the number of shares outstanding ​(3.6 ​million) remains​ unchanged, what is​ Global's share price in 2019​?

a. What is​ Global's EBIT in 2019​? ​Global's EBIT in 2019 is ​$ 10.05 million. ​ (Round to two decimal​ places.)

b. What is​ Global's income in 2019​? ​Global's net income in 2019 is ​$ nothing million. ​ (Round to two decimal​ places.)

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c.

First it is needed to evaluate EPS

EPS = net income/ number of outstanding shares

EPS = 10.5 / 3.6

EPS = 3 million (approx)

Price of shares = P/E ratio * EPS

= 25.2 * 3

= 75.6

Hence, the price of shares is $ 75.6.

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