Problem $18-21$ Sustainable Growth $($LO$3)$

A firm has decided that its optimal capital structure is $100\%$ equity$-$financed. It perceives its optimal dividend policy to be a $50\%$ payout ratio. Asset turnover is sales$/$assets $=0\mathrm{.}6,$ the profit margin is $15\%,$ and the firm has a target growth rate of $6\%.$

a$-1.$ Calculate the sustainable growth rate.

Note: Do not round intermediate calculations. Enter your answer as a percent rounded to $1$ decimal place.

a$-2.$ Is the firm$$s target growth rate consistent with its other goals?

b$.$ If the firm$$s target growth rate is not consistent with its other goals, what would asset turnover need to be to achieve its goals?

Note: Do not round intermediate calculations. Round your answer to $3$ decimal places.

c$.$ If the firm$$s target growth rate is not consistent with its other goals, how high would the profit margin need to be to achieve its goals?

Note: Do not round intermediate calculations. Enter your answer as a percent rounded to $1$ decimal place.