Question
Seether, Inc., wishes to maintain a growth rate of 12 percent per year and a debtequity ratio of 0.40. Profit margin is 5.8 percent, and
| Seether, Inc., wishes to maintain a growth rate of 12 percent per year and a debtequity ratio of 0.40. Profit margin is 5.8 percent, and the ratio of total assets to sales is constant at 1.55. |
| What dividend payout ratio is necessary to achieve this growth rate under these constraints? Show all work and formulas |
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Introduction to Finance Markets, Investments and Financial Management
Authors: Ronald W. Melicher, Edgar A. Norton
16th edition
1119398282, 978-1-119-3211, 1119321115, 978-1119398288
