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A firm has an asset turnover ratio of 6.0. Its plowback ratio is 50%, and it is all-equity-financed. If the profit margin of the firm
A firm has an asset turnover ratio of 6.0. Its plowback ratio is 50%, and it is all-equity-financed. If the profit margin of the firm is 2%, what is the maximum payout ratio that will allow it to grow at 4% without resorting to external financing? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)
Maximum Payout Ratio =
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