Austin Grocers recently reported the following 2019 income statement (in millions of dollars): Sales $700 Operating costs including depreciation 500 EBIT $200 Interest 40 EBT $160 Taxes (25%) 40 Net income $120 Dividends $40 Addition to retained earnings $80 For the coming year, the company is forecasting a 35% increase in sales, and it expects that its year-end operating costs, including depreciation, will equal 75% of sales. Austin's tax rate, interest expense, and dividend payout ratio are all expected to remain constant. What is Austin's projected 2020 net income? Enter your answer in millions. For example, an answer of $13,000,000 should be entered as 13. Round your answer to two decimal places. I got 98.13 and it says its wrong What is the expected growth rate in Austin's dividends? Do not round intermediate calculations. Round your answer to two decimal places. I am completely lost on this one An excel walk through it perfered :)
Austin Grocers recently reported the following 2019 income statement (in millions of dollars): Sales $700 Operating costs including depreciation 500 EBIT $200 Interest 40 EBT $160 Taxes (25%) 40 Net income $120 Dividends $40 Addition to retained earnings $80 For the coming year, the company is forecasting a 35% increase in sales, and it expects that its year-end operating costs, including depreciation, will equal 75% of sales. Austin's tax rate, interest expense, and dividend payout ratio are all expected to remain constant. What is Austin's projected 2020 net income? Enter your answer in millions. For example, an answer of $13,000,000 should be entered as 13. Round your answer to two decimal places. I got 98.13 and it says its wrong What is the expected growth rate in Austin's dividends? Do not round intermediate calculations. Round your answer to two decimal places. I am completely lost on this one An excel walk through it perfered :)
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Austin Grocers recently reported the following 2019 income statement (in millions of dollars):
| Sales | $700 | |
| Operating costs including |
500 | |
| EBIT | $200 | |
| Interest | 40 | |
| EBT | $160 | |
| Taxes (25%) | 40 | |
| Net income | $120 | |
| Dividends | $40 | |
| Addition to |
$80 |
For the coming year, the company is
- What is Austin's projected 2020 net income? Enter your answer in millions. For example, an answer of $13,000,000 should be entered as 13. Round your answer to two decimal places.
I got 98.13 and it says its wrong - What is the expected growth rate in Austin's dividends? Do not round intermediate calculations. Round your answer to two decimal places.
I am completely lost on this one
An excel walk through it perfered :)
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