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Dahlia Inc. wishes to maintain a growth rate of 14 percent per year and a debt-equity ratio of 0.4. The profit margin is 6.7 percent
Dahlia Inc. wishes to maintain a growth rate of 14 percent per year and a debt-equity ratio of 0.4. The profit margin is 6.7 percent and the ratio of total assets to sales is constant at 1.64.
- What dividend payout ratio is necessary to achieve this growth rate under these constraints?
- Is this growth rate possible? Yes or No
- What is the maximum sustainable growth rate possible given these constraints?
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