Question
Hyper Construction Company's most recent income statement (in millions of dollars) is shown below: Sales $700 -Operating costs (including depreciation) 500 =EBIT 200 -Interest 40
Hyper Construction Company's most recent income statement (in millions of dollars) is shown below: Sales $700 -Operating costs (including depreciation) 500 =EBIT 200 -Interest 40 =EBT 160 -Taxes (40%) 64 =Net income $ 96 Hyper is forecasting a 15% increase in sales next year and is expecting that its year-end operating costs, including depreciation, will equal 70% of sales. Hyper's tax rate and interest expense are all expected to remain constant. What is Hyper's projected net income for next year? Group of answer choices $128.30 $138.70 $120.90 $133.50
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