Question
Sig, Inc., wishes to maintain a growth rate of 15 percent per year and a debt-equity ratio of .2. The profit margin is 7.1 percent,
Sig, Inc., wishes to maintain a growth rate of 15 percent per year and a debt-equity ratio of .2. The profit margin is 7.1 percent, and the ratio of total assets to sales is constant at 1.68. |
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.) |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started