Fix-It Co. wants to maintain a 9.89 percent annual growth rate, a steady debt-to-equity ratio of 0.42,

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Fix-It Co. wants to maintain a 9.89 percent annual growth rate, a steady debt-to-equity ratio of 0.42, and a 40 percent dividend payout ratio. The ratio of total assets to sales is fixed at 1.3. What profit margin should the firm achieve?

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Fundamentals of Corporate Finance

ISBN: 978-1259024962

6th Canadian edition

Authors: Richard Brealey, Stewart Myers, Alan Marcus, Devashis Mitra, Elizabeth Maynes, William Lim

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Posted Date: Jul 10, 2023 03:41 AM

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Fix-It Co. wants to maintain a 9.89 percent annual growth rate, a steady debt-to-equity ratio of 0.42,

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Expert Answer:

To determine the profit margin that FixIt Co should achieve we can use the DuPont analysis which bre... View the full answer

Fundamentals of Corporate Finance

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