Fulkerson Manufacturing wishes to maintain a sustainable growth rate of 10.25 percent a year, a debt-equity ratio of .36, and a dividend payout ratio of 34.5 percent. The ratio of total assets to sales is constant at 1.39.

What profit margin must the firm achieve?

The Rose Company has net income of $153,850. There are currently 27.05 days sales in receivables. Total assets are $842,000, total receivables are $146,700, and the debt-equity ratio is .55.

Requirement 1:

What is the companys profit margin? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places (e.g., 32.16).)

Profit margin

%

Requirement 2:

What is the companys total asset turnover? (Do not round intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16).)

Total asset turnover

times

Requirement 3:

What is the companys ROE? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places (e.g., 32.16).)

Assume the following ratios are constant.

Total asset turnover	=	2.26
Profit margin	=	5.4	%
Equity multiplier	=	1.73
Payout ratio	=	39	%

Required:

What is the sustainable growth rate?