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Project earnings per share for the next two years

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Security analysts following the Lester Corporation use a simplified income-statement method of forecasting. Assume that current sales are $50 million and are expected to grow by 12.5% in year 1 and 2. The after-tax profit margin is projected at 10% in year 1, and 10.2% in year 2. The number of shares outstanding is anticipated to be 500,000 for year 1, and 550,000 for year 2. Calculate the project earnings per share for the next two years.

Reference no: EM132668313

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