Question: Dahlia Inc wishes to maintain a growth rate of 9
Dahlia, Inc., wishes to maintain a growth rate of 9 percent per year and a debt-equity ratio of 0.55. Profit margin is 6.2 percent, and the ratio of total assets to sales is constant at 1.90. Is this growth rate possible? To answer, determine what the dividend payout ratio must be. How do you interpret the result?
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