INTERMEDIATE 16. Full-Capacity Sales [LO1] Seaweed Mfg., Inc., is currently operating at only (Questions 16-27) 95 percent of fixed asset capacity. Current sales are $550,000. How fast can sales grow before any new fixed assets are needed? CHAPTER 4 Long-Term Financial Planning and Growth 115 17. Fixed Assets and Capacity Usage (L01) For the company in the previous problem, suppose fixed assets are $440,000 and sales are projected to grow to $630,000. How much in new fixed assets are required to support this growth in sales? Assume the company maintains its current operating capacity. 18. Growth and Profit Margin (L03) McCormac Co. wishes to maintain a growth rate of 12 percent a year, a debt-equity ratio of 1.20, and a dividend payout ratio of 30 percent. The ratio of total assets to sales is constant at 75. What profit margin must the firm achieve? 19. Growth and Debt-Equity Ratio (LO3) A firm wishes to maintain a growth rate of 11.5 percent and a dividend payout ratio of 30 percent. The ratio of total assets to sales is constant at 60, and profit margin is 6.2 percent. If the firm also wishes to maintain a constant debt-equity ratio, what must it be