Dante Co. wishes to maintain a growth rate of12 percent per year, a debt-equity ratio of .85,
Question:
Dante Co. wishes to maintain a growth rate of12 percent per year, a debt-equity ratio of .85, and a dividend payout ratio of 30 percent. The ratio of total assets to sales is constant at .95. What profit margin must thefirm achieve?
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 100% (1 review)
To find the profit margin that Dante Co must achieve in order to maintain a growth rate of 12 percen...View the full answer
Answered By
GERALD KAMAU
non-plagiarism work, timely work and A++ work
4.40+
6+ Reviews
11+ Question Solved
Related Book For
Fundamentals of Corporate Finance
ISBN: 978-0077861704
11th edition
Authors: Stephen Ross, Randolph Westerfield, Bradford Jordan
Question Posted:
Students also viewed these Business questions
-
Gamgee Co. wishes to maintain a growth rate of 11 percent per year, a debt-equity ratio of .75, and a dividend payout ratio of 25 percent. The ratio of total assets to sales is constant at .65. What...
-
Hazelmere Co. wishes to maintain a growth rate of 12 percent a year, a debt-equity ratio of 1.20, and a dividend payout ratio of 30 percent. The ratio of total assets to sales is constant at 0.75....
-
Lang Co. wishes to maintain a growth rate of 8 percent a year, a debt-equity ratio of .45, and a dividend payout ratio of 60 percent. The ratio of total assets to sales is constant at 1.60. What...
-
Figure shows a current loop ABCDEFA carrying a current i = 5.00 A. The sides of the loop are parallel to the coordinate axes shown, with AB = 20.0 cm, BC = 30.0 cm, and FA = 10.0 cm. In unit vector...
-
Beta Companys accountants just completed the income statement and balance sheet for the year and have provided the following information (dollars in thousands): Other Data: The company issued...
-
What are the day-to-day duties of this occupation? How would these duties contribute to the financial success of a company?
-
Lundholm Corp. is considering the purchase of a robotic machine that would replace a manual labor production task. The purchase and installation of this machine would require an upfront cash...
-
Geog Lav opened Geog Cleaners on March 1, 2014. During March, the following transactions were completed. Mar. 1 Issued 10,000 shares of common stock for $15,000 cash. 1 Purchased used truck for...
-
Calculate the purchase price of the $1,000 face value bond using the information given below. (Do not round the intermediate calculations. Round your final answer to 2 decimal places.) Issue date Dec...
-
A truck starts from rest and moves with a constant acceleration of 5.0 m/s 2 . Find its speed and the distance traveled after 4.0 s has elapsed.
-
A body with initial velocity 8.0 m/s moves along a straight line with constant positive acceleration and travels 640 m in 40 s. For the 40 s interval, find (a) The average velocity, (b) The final...
-
Return to Review Question 7.3 A and prepare a statement of financial position as at 31 December 2013. Review Question 7.3 From the following trial balance of B. Morse drawn-up on conclusion of his...
-
A police officer drives his car 8.0 mi north before making right hand turn and driving 9.0 mi to the east. Finally, he makes a left hand turn and travels another 2.0 mi to the north and 14 mi to the...
-
Two point charges q and q2 are held in place 4.50 cm apart. Another point charge -2.05 C of mass 6.00 g is initially located 3.00 cm from each of these charges (the figure(Figure 1)) and released...
-
Download the Early Childhood Professional Resource Guide Template document. Visit the websites for the first three organizations (Center on the Developing Child, NAEYC, and Zero to Three) and...
-
Austral shipbuilding company has been growing at a phenomenal rate of 33 per cent per year because of its rapid expansion and explosive sales in the global market. However, you believe this growth...
-
A boat has a velocity of 4.0 m/s [E] in still water. It is in a river of width 150 m, that has a river velocity of 3 m/s [N]. a) What is the velocity of the boat relative to the shore? b) How far...
-
The State of Texas maintains records pertaining to the economic development of corporations in the state. From the Economic Development Corporation Report, published by the Texas Comptroller of...
-
Drainee purchases direct materials each month. Its payment history shows that 65% is paid in the month of purchase with the remaining balance paid the month after purchase. Prepare a cash payment...
-
The following is the sales budget for Trickle, Inc., for the first quarter of 2009: January February March Sales budget.........$235,000.........$260,000.........$295,000 Credit sales are collected...
-
Here are some important figures from the budget of Nashville Nougats, Inc., for the second quarter of 2009: The company predicts that 5 percent of its credit sales will never be collected, 35 percent...
-
Below are the most recent balance sheets for Country Kettles, Inc. Excluding accumulated depreciation, determine whether each item is a source or a use of cash, and the amount: COUNTRY KETTLES, INC....
-
Given the marginal cost estimates associated with obtaining additional interest-checking account funding in the table below, what is the estimated marginal cost of obtaining additional...
-
( a ) In this problem, we will now make deposits at the beginning of the year. The only columns we will need to interchange are the interest and deposit columns. Time and ending balance formula's...
-
Adjustments for the year ending december 31 2020. climbing equipment is depreciated using the accelerated depreciation method at a rate of 20%. the only acquisition made this year was made on...
Study smarter with the SolutionInn App