McCormac Co. wishes to maintain a growth rate of 9 percent a year, a debt-equity ratio of 0.33, and a dividend payout ratio of 58 percent. The ratio of total assets to sales is constant at 1.32.

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

The Green Giant has a 7 percent profit margin and a 33 percent dividend payout ratio. The total asset turnover is 1.5 and the equity multiplier is 1.5.

What is the sustainable rate of growth?