The most recent Income Statement for the ABC Company is shown here:

Revenues $ 975,000

Total Costs ($ 712,500)

Net Income $ 262,500

Total Dividends Paid $ 35,625

a. Revenues are forecasted to increase by 10% next year. The Net Profit Margin and Dividend Payout Ratio are expected to remain constant next year. In Excel, forecast the Income Statement (including Net Income and Dividends) for next year. Please show work.

b. If the P/E ratio for the company is forecasted to be 15 next year with the number of shares outstanding is 100,000, then what is the predicted Earnings Per Share (EPS1), predicted Stock Price (P1), and predicted dividends per share (D1) for the Hawk Company next year using the Forecasted Income Statement? Please show work

c. Given your values for part b., what is the Expected Return of the Hawk Company over the coming year next year if the current stock price is $37.00 per share? PLease show work

d. If the Required Return is 8.00%, would you recommend a BUY, SELL, or HOLD on the Hawk Company? Please explain and show work.