Landers Recording, Inc., wishes to maintain a growth rate of 12 percent per year and a debt-equity

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Lander’s Recording, Inc., wishes to maintain a growth rate of 12 percent per year and a debt-equity ratio of .40. Profit margin is 4.5 percent, and the ratio of total assets to sales is constant at 1.75. 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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Fundamentals Of Corporate Finance

ISBN: 9780072553079

6th Edition

Authors: Stephen A. Ross, Randolph Westerfield, Bradford D. Jordan

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