Need help. accounting Crock Hunters wishes to maintain a growth rate of8% a year, a debt equity ratio of 0.45 and a dividendpayout ratio of 25%. The ratio of total assets tosales is constant at 1.40.What profit margin must the firm achieve?

Sustainable growth rate (SGR) = Retention Ratio × Return on Equity (ROE) 1. Calculate the retention…

Answered: Crock Hunters wishes to maintain a…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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What profit margin must the firm achieve ?
Ramble On Co. wishes to maintain a growth rate of 6 percent a year, a debt-equity ratio of 0.49, and a dividend payout ratio of 52 percent. The ratio of total assets to sales is constant at 1.34. What profit margin must the firm achieve?
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McCormack co. Wishes to maintain a growth rate of 6 percent a year, a debt equity ratio of 0.49, and a dividend payout ratio of 58 percent. The ratio of total assets to sales is constant at 1.41. What profit margin must the firm achieve?
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Crock Hunters wishes to maintain a growth rate of 8% a year, a debt equity ratio of 0.45 and a dividend payout ratio of 25%. The ratio of total assets to sales is constant at 1.40. What profit margin must the firm achieve?