Fulkerson Manufacturing wishes to maintain a sustainable growth rate of 9.25 percent a year, a debt–equity...

Fulkerson Manufacturing wishes to maintain a sustainable growth rate of 9.25 percent a year, a debt–equity ratio of .40, and a dividend payout ratio of 32.5 percent. The ratio of total assets to sales is constant at 1.35.

What profit margin must the firm achieve in order to meet its growth rate goal? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

Profit margin             %

Expert Solution

SEE THE IMAGE. ANY DOUBTS, FEEL FREE TO ASK. THUMBS UP PLEASE

jeff jeffy answered 9 months ago

Ramble On Co. wishes to maintain a growth rate of 7 percent a year, a debt-equity...

Ramble On Co. wishes to maintain a growth rate of 7 percent a year, a debt-equity ratio of 0.31, and a dividend payout ratio of 66 percent. The ratio of total assets to sales is constant at 1.27. What profit margin must the firm achieve?

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 9 percent a year, a debt-equity...

Ramble On Co. wishes to maintain a growth rate of 9 percent a year, a debt-equity ratio of 0.33, and a dividend payout ratio of 62 percent. The ratio of total assets to sales is constant at 1.38. What profit margin must the firm achieve? 

Ramble On Co. wishes to maintain a growth rate of 9 percent a year, a debt-equity...

Ramble On Co. wishes to maintain a growth rate of 9 percent a year, a debt-equity ratio of 0.49, and a dividend payout ratio of 56 percent. The ratio of total assets to sales is constant at 1.25. What profit margin must the firm achieve?

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.)

Abacus Co. wishes to maintain a growth rate of 14 percent a year, a debt–equity ratio...

Abacus Co. wishes to maintain a growth rate of 14 percent a year, a debt–equity ratio of 1.4, and a dividend payout ratio of 26 percent. The ratio of total assets to sales is constant at 0.8. What profit margin must the firm achieve? (in %) (round 2 decimal places)

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.)

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.,...

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.)...

Question

Fulkerson Manufacturing wishes to maintain a sustainable growth rate of 9.25 percent a year, a debt–equity...

Solutions

Expert Solution

Related Solutions

Ramble On Co. wishes to maintain a growth rate of 7 percent a year, a debt-equity...

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 9 percent a year, a debt-equity...

Ramble On Co. wishes to maintain a growth rate of 9 percent a year, a debt-equity...

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

Abacus Co. wishes to maintain a growth rate of 14 percent a year, a debt–equity ratio...

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

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

Suprenuk, 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...