User Account

All Pages

What is austin''s projected 2009 net income

Assignment Help Finance Basics
Reference no: EM131106401

Austin Grocers recently reported the following 2008 income statement (in millions of dollars):
Sales $700
Operating costs including depreciation 500
EBIT $200
Interest 40
EBT $160
Taxes (40%) 64
Net income $ 96
Dividends $ 32
Addition to retained earnings $ 64
This year the company is forecasting a 25% increase in sales; and it expects that its yearend operating costs, including depreciation, will equal 70% of sales. Austin's tax rate, interest expense, and dividend payout ratio are all expected to remain constant.
a. What is Austin's projected 2009 net income?
b. What is the expected growth rate in Austin's dividends?

Reference no: EM131106401

Questions Cloud

What is walter''s target fixed assets sales ratio : Walter Industries has $5 billion in sales and $1.7 billion in fixed assets. Currently, the company's fixed assets are operating at 90% of capacity. a. What level of sales could Walter Industries have obtained if it had been operating at full capacity..
What account should be credited in the general fund : What account should be credited in the general fund on the date the grant was received - The grant from the state is an example of what type of non exchange transaction?
Where in the financial statements is preferred stock : Where in the financial statements is preferred stock normally reported?
What amount should darien report for infrastructure : On the statement of net assets at December 31, 2005, what amount should Darien report for infrastructure under the governmental activities column?
What is austin''s projected 2009 net income : This year the company is forecasting a 25% increase in sales; and it expects that its yearend operating costs, including depreciation, will equal 70% of sales. Austin's tax rate, interest expense, and dividend payout ratio are all expected to remain ..
Ordering calendars at walton bookstore : As stated in Example 12.6, the critical fractile analysis is useful for finding the optimal order quantity, but it doesn't (at least by itself) show the probability distribution of net profit. Use @RISK, as in Chapter 10, to explore this distribut..
Establish data architectural models for the enterprise : Imagine you are an HIM Compliance Manager for a large hospital system, and you are responsible for the integration new clinical data into your existing electronic health record (EHR). Discuss you preliminary steps for creating a data integration s..
Conjunction with the potential employer liability : Identify the potential legal claim and assess the likelihood of prevailing in conjunction with the potential employer liability.
What is meant by the term participating cumulative : 1. Dagwood Inc. recently noted that its 4% preferred stock and 4% participating preferred stock, which are both cumulative, have priority as to dividends up to 4% of their par value.

Reviews

Write a Review

Finance Basics Questions & Answers

  Discuss the general factors that influence the quality of a

discuss the general factors that influence the quality of a companys reported earnings and its balance

  Calculate the price of bond if ytm is given

Valuing Bonds: Syberboard has issued a bond with the following characteristics:

  As a member of ua corporations financial staff you should

as a member of ua corporations financial staff you must estimate the year 1 cash flow for a proposed project with the

  Suppose that youre a financial manager researching

imagine that you are a financial manager researching investments for your client that align with its investment goals.

  A financial planner is examining the portfolios held by

a financial planner is examining the portfolios held by several of her clients. the portfolios are described below.

  How would this rank order change

What is the risk factor associated with international investing that potentially can also be viewed as a benefit [and hence, a 4th reason to invest internationally -- see question #1]. IF this factor is trending favorably for your investment portf..

  The bonds have a 20-year maturity an annual coupon rate of

charles river company has just sold a bond issue with 10 warrants attached. the bonds have a 20-year maturity an annual

  In the calculations round normal distribution values to 4

use the black scholes model to find the price for a call option with the following inputs current stock price 28 strike

  Discussion on the company growth

Imagine a startup company of your own and briefly trace its development from a sole proprietorship to a major corporation with a focus on how that development would be financed.

  What are some of the drawbacks using dividend growth model

Is there a significant difference? Please explain your answer. What are some of the drawbacks using Dividend Growth Model, or any other dividend based pricing model?

  Why would a financial manager use the overall cost

1.Why would a financial manager use the overall cost of capital for investment decisions when the specific decision under consideration may be funded by only one source of capital, (e.g., debt or equity

  What are the key activity areas for securities firms

What are the key activity areas for securities firms? How does each activity area assist in the generation of profits and what are the major risks for eeach area?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd