Question
Sig, Inc., wishes to maintain a growth rate of 11 percent per year and a debt-equity ratio of .2. The profit margin is 5.9 percent,
Sig, Inc., wishes to maintain a growth rate of 11 percent per year and a debt-equity ratio of .2. The profit margin is 5.9 percent, and the ratio of total assets to sales is constant at 1.56. (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) |
What dividend payout ratio is necessary to achieve this growth rate under these constraints? |
Payout Ratio _______% ?
Is this growth rate possible? yes/no? |
What is the maximum sustainable growth rate possible given these constraints? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) |
Sustainable Growth Rate ______________%
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