a. Given the data for the Company XYZ in 2008 as below, if the sales is expected to grow 25% in 2009, and the operating cost is 70% of the sales revenue in 2009, other things being equal, whats the dividend payout and addition to retained earnings (R/E) in 2009?

2008

Sales $700

Operating costs 500

EBIT $200

Interest 40

EBT $160

Taxes (40%) 64

Net income $ 96

Dividends (33.33%) $ 32

Addit. to R/E $ 64

b. Whats the percentage change in dividend payout from 2008 to 2009?

17-6 If the Company XYZ has the following data in 2008: Sales = $300,000,000; Growth rate of sales (g_Sales) = 12%; Inventory (Inv.) = $25 + 0.125 (Sales), whats the projected inventory turnover (sales/inventory) in 2009?