Abacus Co. wishes to maintain a growth rate of 13 percent per year, a debt-equity ratio of

Question:

Abacus Co. wishes to maintain a growth rate of 13 percent per year, a debt-equity ratio of 1.20, 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?

Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...