DEPRECIATION $ 58.00
INTEREST EXPENSE $ 28.00
YOU ARE INFORMED THAT THE ESTIMATED OPERATION PROFIT MARGIN IS 0.16 AND THE TAX RATE IS 32 PERCENT.
a-COMPUTE THE ESTIMATED EPS FOR 2010.
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. THERFORE, YOU ARE
ASKED TO DRIVE BOTH OPTIMISTIC AND PESSIMISTIC EPS ESTIMATES
USING 0.15 AND 0.17 FOR THE OPM AND HOLDING EVERYTHING ELSE
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