Question 6. Fundamental Growth in Operating Income {Show me your formula and details) You are trying to estimate a growth rate for HipHop Inc., a record producer and distributor. The rm earned $100 million in after-tax operating income on capital invested of $800 million last year. In addition, the rm reported net capital expenditures of $25 million and an increase in noncash working capital of $15 million. a) Assuming that the fn'm's return on capital and reinvestment rate remain unchanged, estimate the expected growth in operating income next year. 13) How would your answer change if you were told that the rm's return on capital next year will increase by 2.5%