In: Finance
Shinedown, Inc., wishes to maintain a growth rate of 12 percent per year and a debt–equity ratio of .6. Profit margin is 5.4 percent, and the ratio of total assets to sales is constant at 1.73. |
What dividend payout ratio is necessary to achieve this growth rate under these constraints? (Do not be surprised if your answer is negative. 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.) |
Payout ratio | -114.93% |
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.) |
Maximum growth rate | % |