Suprenuk, Inc., wishes to maintain a growth rate of 11 percent per year and a debt-equity ratio
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Suprenuk, Inc., wishes to maintain a growth rate of 11 percent per year and a debt-equity ratio of .37. Profit margin is 4.2 percent and the ratio of total assets to sales is constant at .80. Is this growth rate possible? To answer, determine what the dividend payout ratio must be. How do you interpret the result?
DividendA 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...
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Related Book For
Corporate Finance
ISBN: 978-1259918940
12th edition
Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe, Bradford Jordan
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