A firm is projecting growth of 12% next year. Management has publicized the following goals:

• Finance 50% of assets with debt
• Payout 75% of earnings as dividends
• Maintain a net margin of 8%
• Avoid the issuance of new equity
• Keep the firms asset turnover constant at 1.2

Can the firm meet the stated goals and growth target? Why or why not?

• Yes, the goals are consistent
• No, because the growth rate is not consistent with the other goals
• No, because sales growth will be less than 12%
• No, because sales must grow at a rate greater than 12%