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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.

  1. What dividend payout ratio is necessary to achieve this growth rate under these constraints?
  2. Is this growth rate possible? Yes or No
  3. What is the maximum sustainable growth rate possible given these constraints?

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