Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Tinsley, Incorporated, wishes to maintain a growth rate of 1 2 percent per year and a debt - equity ratio of . 6 . The

Tinsley, Incorporated, wishes to maintain a growth rate of 12 percent per year and a debt-equity ratio of .6. The profit margin is 4.9 percent, and the ratio of total assets to sales is constant at 1.66.
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.)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Executive Finance And Strategy

Authors: Ralph Tiffin

1st Edition

0749471506, 978-0749471507

More Books

Students also viewed these Finance questions