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Suprenuk, Inc., wishes to maintain a growth rate of 10 percent per year and a debt-equity ratio of .5. Profit margin is 5.1 percent and

Suprenuk, Inc., wishes to maintain a growth rate of 10 percent per year and a debt-equity ratio of .5. Profit margin is 5.1 percent and the ratio of total assets to sales is constant at 1.70.

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 2 decimal places, e.g., 32.16.)

What is the maximum growth rate possible? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

Is a growth rate of 10 percent possible?

  • Possible

  • Impossible

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