The financial planning committee of Nickel News, Co. has projected a Growth Rate of 8% for...

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Finance

The financial planning committee of Nickel News, Co. hasprojected a Growth Rate of 8% for both Sales and Operating Costsfor the upcoming year. No external capital will be required, andcurrently prevailing Interest Rates and Tax Rates are not expectedto change.
Nickel News Company
Income Statement
For the (Current)Year Ended ________________
Sales …..................................................... $240,000,000
Operating Costs …....................................113,000,000
Operating Income …................................ $127,000,000
Interest Expense …..................................27,000,000
Pre-Tax Income …................................... $100,000,000
Income Taxes ….......................................33,000,000
Net Income …........................................... $67,000,000
Preferred Stock Dividends for the current year totaled $10,000,000. Common Stock Dividends for the current year totaled $16,000,000. If management is expected to give Common Stockholdersan 8% increase in Dividends Per Share, calculate the rate at whichRetained Earnings will grow for the upcoming year.

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The financial planning committee of Nickel News, Co. hasprojected a Growth Rate of 8% for both Sales and Operating Costsfor the upcoming year. No external capital will be required, andcurrently prevailing Interest Rates and Tax Rates are not expectedto change.Nickel News CompanyIncome StatementFor the (Current)Year Ended ________________Sales …..................................................... $240,000,000Operating Costs …....................................113,000,000Operating Income …................................ $127,000,000Interest Expense …..................................27,000,000Pre-Tax Income …................................... $100,000,000Income Taxes ….......................................33,000,000Net Income …........................................... $67,000,000Preferred Stock Dividends for the current year totaled $10,000,000. Common Stock Dividends for the current year totaled $16,000,000. If management is expected to give Common Stockholdersan 8% increase in Dividends Per Share, calculate the rate at whichRetained Earnings will grow for the upcoming year.