Refer to the information for Rowan Company in Problem 19.23. The firms management desires a sustainable growth
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Refer to the information for Rowan Company in Problem 19.23. The firm’s management desires a sustainable growth rate (SGR) of 10 percent but does not wish to change the company’s level of debt or its payout ratio. What will the firm’s new net profit margin have to be in order to achieve the desired growth rate?
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Target SGR 10 Plowback ratio 33 Debt ratio 45 Equity m...View the full answer
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Related Book For 
Fundamentals of corporate finance
ISBN: 978-0470876442
2nd Edition
Authors: Robert Parrino, David S. Kidwell, Thomas W. Bates
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