Question 13 4 pts Amarillo Associates has a debt ratio of 50 percent, a total asset turnover ratio of 0.5, and a net profit margin of 10 percent. The Board of Directors is unhappy with the current return on equity (ROE), and they think it could be doubled. This could be accomplished (1) by increasing the profit margin to 12 percent, and (2) by increasing debt utilization. Total assets turnover will not change. What new debt ratio, along with the new 12 percent profit margin, would be required to double the ROE? 30.0 percent 33.3 percent 65.0 percent 66.7 percent 70.0 percent. 4 pts Question 14 Trinity Manufacturing is expected to pay a dividend of D1 - $1.50 per share at the end of the year, and that dividend is expected to grow at a constant rate of 5.00% per year in the future. The company's beta is 1.75, the market risk premium is 6.50%, and the risk-free rate is 4.00%. What is the company's current stock price? Do not round intermediate calculations. $13.44 $14.46 $17.01 $19.93 $12.93 Question 13 4 pts Amarillo Associates has a debt ratio of 50 percent, a total asset turnover ratio of 0.5, and a net profit margin of 10 percent. The Board of Directors is unhappy with the current return on equity (ROE), and they think it could be doubled. This could be accomplished (1) by increasing the profit margin to 12 percent, and (2) by increasing debt utilization. Total assets turnover will not change. What new debt ratio, along with the new 12 percent profit margin, would be required to double the ROE? 30.0 percent 33.3 percent 65.0 percent 66.7 percent 70.0 percent. 4 pts Question 14 Trinity Manufacturing is expected to pay a dividend of D1 - $1.50 per share at the end of the year, and that dividend is expected to grow at a constant rate of 5.00% per year in the future. The company's beta is 1.75, the market risk premium is 6.50%, and the risk-free rate is 4.00%. What is the company's current stock price? Do not round intermediate calculations. $13.44 $14.46 $17.01 $19.93 $12.93