What is the expected growth rate in beacon dividends

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Beacon Corporation income statement

Beacon Corp. recently reported the following 2011 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
Additional to retained earnings ................................ $64

For the coming year, the company is forecasting a 35% increase in sales; and it expects that its year-end operating costs, including depreciation, will equal 65% of sales.

Beacon's tax rate, interest expense, and dividend payout ratio are all expected to remain constant.

What is Beacon's projected 2012 net income? Round your answer to the nearest cent.

What is the expected growth rate in Beacon's dividends? Round your answer to two decimal places.

 

Reference no: EM13287597

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