PRO FORMA INCOME STATEMENT Austin Grocers recently reported the following 2014 income statement (in millions of dollars):
For the coming year, the company is forecasting a 25% increase in sales; and it expects that its year-end 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 2015 net income?
b. What is the expected growth rate in Austin’s dividends?