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ABC Co. wishes to maintain a growth rate of 8 percent a year, a constant debt-equity ratio of 0.42, and a dividend payout ratio of
ABC Co. wishes to maintain a growth rate of 8 percent a year, a constant debt-equity ratio of 0.42, and a dividend payout ratio of 50 percent. The ratio of total assets to sales is constant at 1.3. What profit margin must the firm achieve?
a. | 12.92 percent | |
b. | 13.46 percent | |
c. | 13.56 percent | |
d. | 14.33 percent |
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