1. ABC Corporation recently reported the following income statement for 2018 (in millions of S): Sales $8,000 Operating costs 3,000 EBIT $5,000 Interest 200 $4,800 Earnings before taxes (EBT) Taxes (40%) Net income available to common shareholders 1.920 $2,880 The company forecasts that its sales will increase by 15% in 2019 and its operating costs will increase in proportion to sales. The company's interest expense is expected to remain at $200 million, and the tax rate will remain at 40%. The company plans to pay out 40% of its net income as dividends, the other 60% will be addition to retained earnings. What is the forecasted addition to retained earnings for 2019? 2. If 10000 TL will be placed in your savings account at the end of each year for 7 years, what is the present worth of the total amount? In other words, if you want to give 10000 TL per year to someone for 7 years, what sum would be required at present? The interest rate is 14%. 1