Rowan Company has a net profit margin of 8.3 percent, debt ratio of 41 percent, total assets of $4,332,200, sales of $7,182,600, and a dividend payout ratio of 57 percent. The firm’s management desires a sustainable growth rate (SGR) of 11 percent but does not wish to change the company’s level of debt or its payout ratio. What will the firm’s new net profit margin have to be in order to achieve the desired growth rate?
Net profit margin _______ % (Round intermediate calculation to 2 decimal places, e.g. 5.25 and final answer to 1 decimal place, e.g. 17.5%.)