jackson1245
New member
- Joined
- Feb 6, 2017
- Messages
- 5
A firm wishes to maintain a growth rate of 12.4 percent and a dividend payout ratio of 28 percent. The ratio of total assets to sales is constant at 0.60 and the profit margin is 7.1 percent. If the firm wishes to maintain a constant debt to equity ratio what must it be?
Could you please answer using these formulas?
Sustainable growth rate (SGR) = (ROE*R) / (1-(ROE*R))
ROE = p(S/A) (1+D/E)
Could you please answer using these formulas?
Sustainable growth rate (SGR) = (ROE*R) / (1-(ROE*R))
ROE = p(S/A) (1+D/E)