sig inc wishes to maintain a growth rate of 10 percent per year and a debt...

sig inc wishes to maintain a growth rate of 10 percent per year and a debt equity ration of .5 the 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 contraints? what is the maximun sustainable growth rate possible given these contraints?

Solutions

Expert Solution

jeff jeffy answered 6 months ago

Next > < Previous

Related Solutions

Sig, Inc., wishes to maintain a growth rate of 14 percent per year and a debt-equity...

Sig, Inc., wishes to maintain a growth rate of 14 percent per year and a debt-equity ratio of .4. The profit margin is 6.7 percent, and the ratio of total assets to sales is constant at 1.64. 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 the nearest whole number, e.g.,...

Sig, Inc., wishes to maintain a growth rate of 11 percent per year and a debt-equity...

Sig, Inc., wishes to maintain a growth rate of 11 percent per year and a debt-equity ratio of .2. The profit margin is 5.9 percent, and the ratio of total assets to sales is constant at 1.56. (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) What dividend payout ratio is necessary to achieve this growth rate under these constraints? Payout Ratio _______% ? Is this growth rate possible? yes/no?...

Suprenuk, Inc., wishes to maintain a growth rate of 11 percent per year and a debt-equity...

Suprenuk, Inc., wishes to maintain a growth rate of 11 percent per year and a debt-equity ratio of .2. Profit margin is 5.9 percent and the ratio of total assets to sales is constant at 1.56. 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.)...

Drakes Inc wishes to maintain a growth rate of 11 percent per year and a debt-equity...

Drakes Inc wishes to maintain a growth rate of 11 percent per year and a debt-equity ratio of .2. Profit margin is 5.9 percent and the ratio of total assets to sales is constant at 1.56. 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.)...

Suprenuk, Inc., wishes to maintain a growth rate of 13 percent per year and a debt-equity...

Suprenuk, Inc., wishes to maintain a growth rate of 13 percent per year and a debt-equity ratio of .3. Profit margin is 7 percent and the ratio of total assets to sales is constant at 1.67. 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.)...

Shinedown, Inc., wishes to maintain a growth rate of 12 percent per year and a debt–equity...

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...

Shinedown, Inc., wishes to maintain a growth rate of 12 percent per year and a debt–equity...

Shinedown, Inc., wishes to maintain a growth rate of 12 percent per year and a debt–equity ratio of .3. Profit margin is 5.2 percent, and the ratio of total assets to sales is constant at 1.71. 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...

Ramble On Co. wishes to maintain a growth rate of 10 percent a year, a debt-equity...

Ramble On Co. wishes to maintain a growth rate of 10 percent a year, a debt-equity ratio of 0.35, and a dividend payout ratio of 62 percent. The ratio of total assets to sales is constant at 1.33. What profit margin must the firm achieve? A. 13.42% B. 14.55% C. 23.82% D. 23.57% E. 8.17%

Ramble On Co. wishes to maintain a growth rate of 11.4 percent per year, a debt-equity...

Ramble On Co. wishes to maintain a growth rate of 11.4 percent per year, a debt-equity ratio of 1.5, and a dividend payout ratio of 30 percent. The ratio of total assets to sales is constant at .87. What profit margin must the firm achieve? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

Ramble On Co. wishes to maintain a growth rate of 11 percent per year, a debt-equity...

Ramble On Co. wishes to maintain a growth rate of 11 percent per year, a debt-equity ratio of 1.3, and a dividend payout ratio of 35 percent. The ratio of total assets to sales is constant at .85. What profit margin must the firm achieve? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

Subjects