This year, Acme Inc achieved a 5.9% profit margin on $1,150,000 of net income. Their asset turnover was 3.87 on $5,000,000 of total assets. The board of directors however is dissatisfied with last years ROA of 0.23 and want management to increase ROA next year to 0.29. They also specify that asset turnover remain unchanged and net income grow by 5%. What is the target growth rate in total assets needed to meet the boards goal?

This year, Acme Inc achieved a 5.9% profit margin on $1,150,000 of net income. Their asset turnover was 3.87 on $5,000,000 of total assets. The board of directors however is dissatisfied with last year's ROA of 0.23 and want management to increase ROA next year to 0.29. They also specify that asset turnover remain unchanged and net income grow by 5%. What is the target growth rate in total assets needed to meet the board's goal? 22.1% 19.2%25.4%29.3%16.7%