What is samson projected 2006 net income

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Samson's Sailboats Inc. recently reported the following income statement (in millions of dollars):

                                                   2005

              Sales                              $4,500

              Operating costs                     3,500

              EBIT                               $1,000

              Interest                             200

              EBT                                $ 800

              Taxes (40%)                          320

              Net income                         $ 480

 

              Dividends (40%)                    $ 192

              Addition to retained earnings      $ 288

This year the company is forecasting a 60% increase in sales, and it expects that its year-end operating costs will decline to 50% of sales. Samson's tax rate, interest expense, and dividend payout ratio are all expected to remain constant. What is Samson's projected 2006 net income?

Reference no: EM131890909

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