Compute the estimated eps for s and p industrials index

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Reference no: EM13924289

You are given the following estimated per share data related to the S&P Industrials Index for the year 2013:

Sales	$1,450.00
Depreciation	58.00
Interest expense	28.00

You are also informed that the estimated operating profit (EBIT) margin is 12 percent and the tax rate is 32 percent.

a. Compute the estimated EPS for 2013.

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. Therefore, you are asked to derive both optimistic and pessimistic EPSestimates using 11 and 13 percent for the OPM and holding everything else constant.

Reference no: EM13924289

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