Problem:
High Flyer, Inc., wishes to maintain a growth rate of 14.75 percent per year and a debt-equity ratio of .65. The profit margin is 4.3 percent, and total asset turnover is constant at 1.13.
Required:
Question 1: What is the dividend payout ratio?
Question 2: Is this payout ratio possible?
Note: Please show how you came up with the solution.