Need help with this Question Devaney Convenience recently reported the following 2018 income statement (inmillions of dollars):Sales$700Operating costs including depreciation $500EBITInterestEBTTaxes (40%)Net incomeDividendsAddition to retained earnings$200$40$160$64$96$32$64For the coming year, the company is forecasting a 30% increase in sales, and it expectsthat its year-end operating costs, including depreciation, will equal 75% of sales.Devaney's tax rate, interest expense, and dividend payout ratio are all expected toremain constant.What is Devaney's projected 2019 net income?a) $112.50b) $104.00c) $132.00d) $222.00e) $250.00

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Answered: Devaney Convenience recently reported…

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter9: Capital Budgeting And Cash Flow Analysis

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Problem 20P

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