You Are Attempting to Estimate Expected Earnings Per Share for a Major

Multiple Choice

You are attempting to estimate expected earnings per share for a major stock market series.You have determined an appropriate estimate for sales per share.Which of the following methods can be used to estimate the profit margin?

A) Base the estimate on recent trends of net profit margins.
B) Estimate the net before tax (NBT) profit margin along with a tax estimate.
C) Incorporate an estimate an operating profit margin, defined as earnings before interest, taxes, and depreciation.
D) All of the above methods are appropriate.
E) None of the above methods are appropriate.