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Austin Grocers recently reported the following 2021 income statement (in millions of dollars): Sales$700Operating costs including depreciation500EBIT$200Interest40EBT$160Taxes (25%)40Net income$120Dividends$40Addition to retained earnings$80 For the coming
Austin Grocers recently reported the following 2021 income statement (in millions of dollars):
Sales$700Operating costs including depreciation500EBIT$200Interest40EBT$160Taxes (25%)40Net income$120Dividends$40Addition to retained earnings$80For the coming year, the company is forecasting a 20% increase in sales, and it expects that its year-end operating costs, including depreciation, will equal 60% of sales. Austin's tax rate, interest expense, and dividend payout ratio are all expected to remain constant.
- What is Austin's projected 2022 net income? Enter your answer in millions. For example, an answer of $13,000,000 should be entered as 13. Do not round intermediate calculations. Round your answer to two decimal places. $ million
- What is the expected growth rate in Austin's dividends? Do not round intermediate calculations. Round your answer to two decimal places. %
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