Use the following income statement and balance sheet for the current period for Global Corp. Assume that sales are expected to grow by 8% next year, the tax rate is 26%, and interest expense will remain constant. Also assume that Global pays out 50% of its net income.

   

 

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Income Statement ($ millions) Net Sales Costs Except Depreciation EBITDA Depreciation and Amortization EBIT Interest Income (expense) Pre-tax Income Taxes Net Income 185.5 - 175.3 10.2 - 1.1 9.1 - $7.7 1.4 -0.4 1.0 Income Statement ($ millions) Net Sales Costs Except Depreciation EBITDA Depreciation and Amortization EBIT Interest Income (expense) Pre-tax Income Taxes Net Income 185.5 - 175.3 10.2 - 1.1 9.1 - $7.7 1.4 -0.4 1.0

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Step 1 Calculate the projected net income Projected Net Sales Current Net Sales Current Net Sales Sa... View the full answer