Problemabacus co wishes to maintain a growth rate of 106, Ask an Expert

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Problem:

Abacus Co. wishes to maintain a growth rate of 10.6 percent a year, a debt-equity ratio of 1.1, and a dividend payout ratio of 22 percent. The ratio of total assets to sales is constant at 0.83.

Required:

Question: What profit margin must the firm achieve?

Note: Please provide reasons to support your answer.

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Basic Finance, Finance

Category:- Basic Finance
Reference No.:- M91149296

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