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Seether, Inc., wishes to maintain a growth rate of 12 percent per year and a debtequity ratio of 0.6. Profit margin is 5.4 percent, and
Seether, Inc., wishes to maintain a growth rate of 12 percent per year and a debtequity ratio of 0.6. Profit margin is 5.4 percent, and the ratio of total assets to sales is constant at 1.73. |
What dividend payout ratio is necessary to achieve this growth rate under these constraints? Payout Ratio=? Is this rate possible? (yes or no) What is the maximum sustainable growth rate possible given these constraints? Suistainable growth rate=? |
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