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McCormac Co. wishes to maintain a growth rate of 10 percent a year, a debt-equity ratio of 0.39, and a dividend payout ratio of 50
McCormac Co. wishes to maintain a growth rate of 10 percent a year, a debt-equity ratio of 0.39, and a dividend payout ratio of 50 percent. The ratio of total assets to sales is constant at 1.27.Required:What profit margin must the firm achieve?(Do not round your intermediate calculations.)
rev: 09_17_2012
a. 16.86%
b. 16.71%
c. 10.4%
d. 10.3%
e. 16.61%
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