Bulla Recording, Inc., wishes to maintain a growth rate of 12 percent per year and a debt–equity ratio...

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Bulla Recording, Inc., wishes to maintain a growth rate of 12 percent per year and a debt–equity ratio of .40. Profit margin is 5.3 percent, and the ratio of total assets to sales is constant at .75.

 

What dividend payout ratio is necessary to achieve this growth rate under these constraints?(Negative answer should be indicated by a minus sign. Do not round intermediate calculations.)

 

Payout ratio%

What is the maximum growth rate possible?(Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16))

 

Maximum growth rate%
    • 11 years ago
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