Question: Problem 4 - 1 8 Growth and Profit Margin [ LO 3 ] Gamgee Company wishes to maintain a growth rate of 1 1 .

Problem 4-18 Growth and Profit Margin [LO3]
Gamgee Company wishes to maintain a growth rate of 11.8 percent per year, a debt-equity ratio of 1.7, and a dividend payout ratio of 20 percent. The ratio of total assets to sales is constant at .89. What profit margin must the firm achieve?

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