A firm has an asset turnover ratio of 2.0. Its plowback ratio is 50%, and ii is

Question:

A firm has an asset turnover ratio of 2.0. Its plowback ratio is 50%, and ii is all-equity-financed. What must its profit margin be if it wishes to finance 10% growth using only internally generated funds?

Asset Turnover
Asset turnover is sales divided by total assets. Important for comparison over time and to other companies of the same industry. This is a standard business ratio.