Question

TI А B с D E G H J 281 Net Margin and EPS Calculations 282 According to its website, IHS Markit is a company that combines information, analytics and expertise to provide solutions for business, finance and government'. 283 Below are selected financial results for the period 2015 to 2018. 284 In 2017 IHS merged with Markit resulting in a significant increase in revenues and expenses but also in Shares Outstanding. 285 In the yellow cells in column I, calculate the three-year compound annual growth rate (CAGR) from 2015 to 2018 for each row. 286 In Row 294 calculate the EPS for each year. 287 In Row 295 calculate the Net Margin Attributable to Common for each year. 288 Based on these results answer the questions below. 289 290 2015 2016 2017 2018 CAGR 291 Revenues 1,113 2,735 3,600 4,009 292 Net Income Attributable to Common 153 153 417 542 293 Shares Outstanding 190 316 416 407 294 Earnings per Share (EPS) 295 Net Margin Attributable to Common 296 297 Between 2015 and 2018 did the company's Net Margin increase, decrease or remain flat? 298 299 Between 2015 and 2018, why was company's EPS growth was so much lower than its revenue growth? 300 301 Relative to 2016 (before the merger) was the merger accretive (increased EPS), dilutive (decreased EPS), or neutral. 302

Please answer using an Excel Formula

Answers must be written using an Excel Formula

Thank you

Answer 1

CAGR

=(((H291/E291)^(1/3))-1)*100)

EPS

=E292/E293

Net margin attributable to common

=(E292/E291)*100