Question
ABC Co. wishes to maintain a growth rate of 10percent a year, a debt-equity ratio of 1.5, and a dividend payout ratio of 25percent. The
ABC Co. wishes to maintain a growth rate of 10percent a year, a debt-equity ratio of 1.5, and a dividend payout ratio of 25percent. The ratio of total assets to sales is constant at 0.6.
What profit margin must the firm achieve? (in %) (round 4 decimal places)
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Financial accounting
Authors: Walter T. Harrison Jr., Charles T. Horngren, C. William Thom
9th edition
978-0132751216, 132751127, 132751216, 978-0132751124
