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

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Tinsley, Inc., wishes to maintain a growth rate of 12 percent per year and a debt-equity ratio of .55. The profit margin is 6.2 percent, and the ratio of total assets to sales is constant at 1.05. 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: 9781265553609

13th Edition

Authors: Stephen Ross, Randolph Westerfield, Bradford Jordan

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