A firm wishes to maintain a growth rate of 11.5 percent and a dividend payout ratio of 30 percent. The ratio of total assets to sales is constant at .60, and profit margin is 6.2 percent. If the firm also wishes to maintain a constant debt-equity ratio, what must it be?

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A firm wishes to maintain a growth rate of 11.5 percent and a dividend payout ratio of 30 percent. The ratio of total assets to sales is constant at .60, and profit margin is 6.2 percent. If the firm also wishes to maintain a constant debt-equity ratio, what must it be?

Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...
Related Book For answer-question

Fundamentals of corporate finance

9th edition

Authors: Stephen Ross, Randolph Westerfield, Bradford Jordan

ISBN: 978-0073382395