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1. Hazelmere Co. wishes to maintain a growth rate of 13% a year, a debt-equity ratio of 1.20, and a dividend payout ratio of 30%.
1. Hazelmere Co. wishes to maintain a growth rate of 13% a year, a debt-equity ratio of 1.20, and a dividend payout ratio of 30%. The ratio of total assets to sales is constant at 0.95. What profit margin must the firm achieve?
2. A firm wishes to maintain a growth rate of 11.5% and a dividend payout ratio of 30%. The ratio of total assets to sales is constant at 0.60, and profit margin is 6.2%. If the firm also wishes to maintain a constant debt-equity ratio, what must it be?
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