Security analysts following the Witczak Corporation use a simplified income-statement method of forecasting. Assume that current sales are $30 million, and are expected to grow by 10.5% in year 1 and 2. The after-tax profit margin is projected at 7% in year 1, and 7.2% in year 2. The number of shares outstanding is anticipated to be 450,000 for year 1, and 500,000 for year 2. Calculate the project earnings per share for the next two years.

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The Answer of Security analysts following the Witczak Corporation use a simplified income-statement method of forecasting. Assume that current sales are $30 million, and are expected to grow by 10.5% in year 1 and 2. The after-tax profit margin is projected at 7% in year 1, and 7.2% in year 2. The number of shares outstanding is anticipated to be 450,000 for year 1, and 500,000 for year 2. Calculate the project earnings per share for the next two years.

Security Analysts Following the Witczak Corporation Use a Simplified Income-Statement