Growth and DebtEquity Ratio A firm wishes to maintain a growth rate of 14 percent and a
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Growth and Debt—Equity Ratio A firm wishes to maintain a growth rate of 14 percent and a dividend payout ratio of 40 percent. The ratio of total assets to sales is constant at .8, and profit margin is 8.5 percent. If the firm also wishes to maintain a constant debt—equity ratio, what must it be?
DividendA dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...
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Fundamentals of Corporate Finance
ISBN: 978-0077861629
8th Edition
Authors: Stephen A. Ross, Randolph W. Westerfield, Bradford D.Jordan
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