CHAPTER 7 QUIZ 82

CHAPTER 7  QUIZ 82


Security analysts following the Witczak Corporation use a simplified income statement
method of forecasting. Assume that current sales (2002) are $30 million and are expected
to grow by 10.5 percent in 2000 and 2001. The aftertax profit margin is projected at 7.0
percent in 2003 and 7.2 percent in 2002. The number of shares outstanding is anticipated
to be 450,000 for 2003 and 500,000 for 2004. Project earnings per share for 2003 and
2004.

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