Determine what the dividend payout ratio must be how do you


Shine down, Inc, wishes to maintain a growth rate of 12% per year and a debt equity ratio of 0.35. Profit margin is 4.9% and the ratio of total assets to sales is constant at 0.75. Is this growth rate possible? To answer, determine what the dividend payout ratio must be. How do you interpret the result? What is the maximum sustainable growth rate for this company? Hint: Be careful with the ratio total assets to sales.

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Financial Management: Determine what the dividend payout ratio must be how do you
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