Retention ratio = 1 - 0.31 = 0.69
Internal growth rate = 0.0675 = (ROA × 0.69)/[1 - (ROA × 0.69)]
ROA = 0.09164
Return on assets = 0.09164 = 0.053 × TAT
Total asset turnover = 1.73 times
a firm wishes to maintain an internal growth rate of 6.75 percent and a dividend payout...
A firm wishes to maintain an internal growth rate of 7.4 percent and a dividend payout ratio of 20 percent. The current profit margin is 5.8 percent, and the firm uses no external financing sources What must total asset turnover be? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Total asset turnover times
Bulla Recording, Inc., wishes to maintain a growth rate of 12 percent per year and a debt–equity ratio of .40. Profit margin is 5.3 percent, and the ratio of total equity to sales is constant at 53.59 percent. Is this growth rate possible? To answer, determine what the dividend payout ratio must be. How do you interpret the result?
High Flyer, Inc., wishes to maintain a growth rate of 15.75 percent per year and a debt-equity ratio of 85. The profit margin is 4.9 percent, and total asset turnover is constant aft 1.09 What is the dividend payout ratio? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places,e.g32.16.) Dividend payout ratio What is the maximum sustainable growth rate for this company?...
Fulkerson Manufacturing wishes to maintain a sustainable growth rate of 10 percent a year, a debt–equity ratio of .37, and a dividend payout ratio of 34 percent. The ratio of total assets to sales is constant at 1.38. What profit margin must the firm achieve in order to meet its growth rate goal? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Profit margin %
Fulkerson Manufacturing wishes to maintain a sustainable growth rate of 9.25 percent a year, a debt–equity ratio of .40, and a dividend payout ratio of 32.5 percent. The ratio of total assets to sales is constant at 1.35. What profit margin must the firm achieve in order to meet its growth rate goal? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Profit margin %
Ramble On Co. wishes to maintain a growth rate of 12 percent per year, a debt-equity ratio of.90, and a dividend payout ratio of 25 percent. The ratio of total assets to sales is constant at 85. 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., 32.16.) Profit margin
High Flyer, Inc., wishes to maintain a growth rate of 14.25 percent per year and a debt- equity ratio of.55. The profit margin is 4.5 percent, and total asset turnover is constant at 1.15. a. What is the dividend payout ratio? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) b. What is the maximum sustainable growth rate for this...
High Flyer, Inc., wishes to maintain a growth rate of 14.25 percent per year and a debt- equity ratio of .55. The profit margin is 4.5 percent, and total asset turnover is constant at 1.15. a. What is the dividend payout ratio? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) b. What is the maximum sustainable growth rate for...
Constraints on Growth: Bulla Recording, Inc., wishes to maintain a growth rate of 12 percent per year and a debt-equity ratio of .30. Profit margin is 5.9 percent, and the ratio of total assets to sales is constant at .85. Is this growth rate possible? To answer, determine what the dividend payout ratio must be. How do you interpret the result?
McCormac Co. wishes to maintain a growth rate of 7 percent a year, a debt-equity ratio of 0.39, and a dividend payout ratio of 64 percent. The ratio of total assets to sales is constant at 1.28. Required: What profit margin must the firm achieve? (Do not round your intermediate calculations.) Multiple Choice 5.75% 9.51% 16.98% 16.73% 10.31%