Landers Recording, Inc., wishes to maintain a growth rate of 12 percent per year and a debt-equity
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Lander’s Recording, Inc., wishes to maintain a growth rate of 12 percent per year and a debt-equity ratio of .40. Profit margin is 4.5 percent, and the ratio of total assets to sales is constant at 1.75. Is this growth rate possible? To answer, determine what the dividend payout ratio must be. How do you interpret the result?
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Related Book For
Fundamentals Of Corporate Finance
ISBN: 9780072553079
6th Edition
Authors: Stephen A. Ross, Randolph Westerfield, Bradford D. Jordan
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