You are trying to estimate a growth rate for HipHop Inc., a record producer and distributor. The firm earned $$100$ million in after$-$tax operating income on capital invested of $$800$ million last year. In addition, the firm reported net capital expenditures of $$25$ million and an increase in noncash working capital of $$15$ million.

a$.$ Assuming that the firm$$s return on capital and reinvestment rate remain unchanged, estimate the expected growth in operating income next year.

b$.$ How would your answer to $($a$)$ change if you were told that the firm$$s return on capital next year will increase by $2\mathrm{.}5\%?($Next year$$s return on capital $=$ This year$$s return on capital $+2\mathrm{.}5\%.)$