$4$

Problem $4-18$ Growth and Profit Margin $[$LO$3]$

$11\mathrm{.}12$

Gamgee Company wishes to maintain a growth rate of $11\mathrm{.}8$ percent per year, a debtequity ratio of $1\mathrm{.}7,$ and a dividend payout ratio of $20$ percent. The ratio of total assets to sales is constant at $\mathrm{.}89.$ What profit margin must the firm achieve? $($Do not round 'intermediate calculations and enter your answer as a percent rounded to $2$ decimal places, e$.$g$.,32\mathrm{.}16.)$

$\backslash$table$[[$Profit margin,$6\mathrm{.}00]]$