Question: Growth and Profit Margin - Dante Co. wishes to maintain a growth rate of 12 percent per year, a debt-equity ratio of .85, and a dividend payout ratio of 30 percent. The ratio of total assets to sales is constant at .95. What profit margin must the firm achieve? Question: Sustainable Growth Rate - You have located the following information on Rock Company: debt ratio = 45%, capital intensity ratio = 2.45 times, profit margin = 18%, and dividend payout ratio = 35%. What is the sustainable growth rate for Rock?
Question: Growth and Profit Margin - Dante Co. wishes to maintain a growth rate of 12 percent per year, a debt-equity ratio of .85, and a dividend payout ratio of 30 percent. The ratio of total assets to sales is constant at .95. What profit margin must the firm achieve? Question: Sustainable Growth Rate - You have located the following information on Rock Company: debt ratio = 45%, capital intensity ratio = 2.45 times, profit margin = 18%, and dividend payout ratio = 35%. What is the sustainable growth rate for Rock?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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