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Leaping Frog Inc. has assets 60% of its sales, the profit margin is 10% and dividend payout ratio is 20%. What is the maximum growth rate obtainable without increasing its debt equity ratio of 2? Assume the performance ratios and balance sheet-to-sales ratios remain the same and that no new shares are issued? Mumple Choice 30% O 66.67% O 12% 42%

Leaping Frog Inc. has assets 60% of its sales, the profit margin is 10% and dividend payout ratio is 20%. What is the maximum growth rate obtainable without increasing its debt equity ratio of 2? Assume the performance ratios and balance sheet-to-sales ratios remain the same and that no new shares are issued? Mumple Choice 30% O 66.67% O 12% 42%

FINANCIAL ACCOUNTING
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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Leaping Frog Inc. has assets 60% of its sales, the profit margin is 10% and dividend payout ratio is 20%. What is the maximum growth rate obtainable without increasing its debt equity ratio of 2? Assume the performance ratios and balance sheet-to-sales ratios remain the same and that no new shares are issued? Mumple Choice 30% O 66.67% O 12% 42%
Transcribed Image Text:Leaping Frog Inc. has assets 60% of its sales, the profit margin is 10% and dividend payout ratio is 20%. What is the maximum growth rate obtainable without increasing its debt equity ratio of 2? Assume the performance ratios and balance sheet-to-sales ratios remain the same and that no new shares are issued? Mumple Choice 30% O 66.67% O 12% 42%
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