3. 29.

Constraints on growth [LO 4.3] Cooloongup Foods Limited wishes to maintain a growth rate of 12 per cent per year and a debt-to-equity ratio of 0.43. The profit margin is 5.9 per cent and the ratio of total assets to revenue is constant at 1.80. Is this growth rate possible? To answer, determine what the dividend payout ratio must be. How do you interpret the result?