Question
Sig, Inc., wishes to maintain a growth rate of 14 percent per year and a debt-equity ratio of .4. The profit margin is 6.7 percent,
Sig, Inc., wishes to maintain a growth rate of 14 percent per year and a debt-equity ratio of .4. The profit margin is 6.7 percent, and the ratio of total assets to sales is constant at 1.64. |
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? |
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Yes
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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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