Use the following income statement and balance sheet for the current period for Global Corp. Assume that sales are expected to grow by 8% next year, the tax rate is 26%, and interest expense will remain constant. Also assume that Global pays out 50% of its net income.

   

 

Income Statement ($ millions) Net Sales Costs Except Depreciation EBITDA Depreciation and Amortization EBIT Interest Income (expense) Pre-tax Income Taxes Net Income 185.5 - 175.3 10.2 - 1.1 9.1 - $7.7 1.4 -0.4 1.0