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Sig, Inc., wishes to maintain a growth rate of 12 percent per year and a debt-equity ratio of .3. The profit margin is 5.2 percent,

Sig, Inc., wishes to maintain a growth rate of 12 percent per year and a debt-equity ratio of .3. The profit margin is 5.2 percent, and the ratio of total assets to sales is constant at 1.71.

What dividend payout ratio is necessary to achieve this growth rate under these constraints? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and enter your answer as a percent rounded to the nearest whole number, e.g., 32.)

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.)

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