McCormac Co. wishes to maintain a growth rate of 7 percent a year, a debt-equity ratio of 0.39, and a dividend payout ratio of 60 percent. The ratio of total assets to sales is constant at 1.31.

Required:

What profit margin must the firm achieve? (Do not round your intermediate calculations.)

rev: 09_17_2012

15.41%

5.99%

9.08%

15.66%

10.38%