What profit margin must the firm achieve ? Dante Co. wishes to maintain a growth rateof 10.2 percent a year, a debt-equity ratioof .9, and a dividend payout ratio of 20percent. The ratio of total assets to sales isconstant at .81. What profit margin mustthe firm achieve?

To determine the profit margin required for Dante Co. to achieve its target growth rate, we can use…

Answered: Dante Co. wishes to maintain a growth…

Financial Management: Theory & Practice

16th Edition

ISBN:9781337909730

Author:Brigham

Publisher:Brigham

Chapter7: Corporate Valuation And Stock Valuation

Section: Chapter Questions

Problem 1P: Ogier Incorporated currently has $800 million in sales, which are projected to grow by 10% in Year 1...

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Dante Co. wishes to maintain a growth rate of 10.2 percent a year, a debt-equity ratio of .9, and a dividend payout ratio of 20 percent. The ratio of total assets to sales is constant at .81. What profit margin must the firm achieve?