What profit margin must the firm


Abacus Co. wishes to maintain a growth rate of 11.8 percent a 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 0.89.

What profit margin must the firm achieve? (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16))

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Financial Management: What profit margin must the firm
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