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XYZ Grocers recently reported the following 2 0 1 4 income statement ( in millions of Rupees ) : This year the company is forecasting
XYZ Grocers recently reported the following income statement in millions of Rupees:
This year the company is forecasting a increase in sales; and it expects that its year end
operating costs, including depreciation, will equal of sales. XYZs tax rate, interest expense,
and dividend payout ratio are all expected to remain constant.
Required:
a What is s projected net income?
b What is the expected growth rate in XYZs dividends?
c Critically comments on the results.
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