Ask a New Question

A firm wants to maintain a growth rate of 7% without incurring any additional equity financing. The firm maintains a constant debt-equity ratio of .6 a total asset turnover ratio of .75, and a profit margin of 6%. What must the dividend payout ratio be?

Ask a New Question or answer this question.

Similar Questions

fill in the following table, assets required for operation $2000Case A - firm uses onlyequity financing Case B - firm uses 30%
1. 1 answer
A firm wishes to maintain an internal growth rate of 4.5 percent and a dividend payout ratio of 60 percent. The current profit
1. 2 answers
13. Although debt financing is usually the cheapest component of capital, it cannot be used to excess becauseinterest rates may
1. 2 answers
Assets required for operation: $2,000Case A – firm uses only equity financing Case B – uses 30% debt with a 10% interest
1. 0 answers

more similar questions