What dividend payout ratio is necessary to achieve

Assignment Help Finance Basics
Reference no: EM132484157

Problem: Sig, Inc., wishes to maintain a growth rate of 13 percent per year and a debt-equity ratio of .3. The profit margin is 7 percent, and the ratio of total assets to sales is constant at 1.67.

A) What dividend payout ratio is necessary to achieve this growth rate under these constraints? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and enter your answer as a percent rounded to the nearest whole number, e.g., 32.)

B) Is this growth rate possible? Yes or No?

C) What is the maximum sustainable growth rate possible given these constraints? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

Reference no: EM132484157

Questions Cloud

Determining the allison holding period return : Allison purchased a 15 year 7% bond at par 1 year ago. Today, she sold the bond at 108.50% of par. What was Allison's holding period return?
Why do we need an automated tool for sql injection : Write an essay discussing sqlmap, an automated tool for sql injection and database takeover in 500 words or more. Why do we need an automated tool for sql.
What should tangible assets include : What would ownership of debt instruments of the government and other companies that can be readily converted to cash be best reported as cash
Discussing iam in a federated cloud application : Write an essay of at least 500 words discussing IAM in a federated cloud application. Use the five-paragraph format. Each paragraph must have at least.
What dividend payout ratio is necessary to achieve : What dividend payout ratio is necessary to achieve this growth rate under these constraints? (A negative answer should be indicated by a minus sign
Write a brief paper about rsa and its methodology : Using the Web or other resources, write a brief paper about RSA, its history, its methodology, and where it is used. Discuss only this point in 500 words.
What is dollar allocation to each patient service department : What is the dollar allocation to each patient services department if patient services revenue is used as the cost driver? Which of the two drivers is better?
How much cash would it have generated : If the company had been able to sell off enough of its fixed assets at book value, so that it was operating at full capacity.
Define firewall security techniques : Using the Web or other resources, do a bit of research on the methodologies that Microsoft Windows firewall uses. Define a firewall. Define firewall security.

Reviews

Write a Review

Finance Basics Questions & Answers

  Financial reporting and analysis

Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..

  A report on financial accounting

This report is specific for a core understanding for Financial Accounting and its relevant factors.

  Describe the types of financial ratios

Describe the types of financial ratios and other financial performance measures that are used during venture's successful life cycle.

  Differences between sole proprietorship and corporation

Briefly describe the major differences between a sole proprietorship and a corporation

  Prepare a cash budget statement

Calculate the expected value of the apartment in 20 years' time. What is the mortgage loan repayment at the beginning of each month

  What are the implied interest rates

What are the implied interest rates in Europe and the U.S.?

  State pricing theory and no-arbitrage pricing theory

State pricing theory and no-arbitrage pricing theory

  Small business administration

Identify the likely stage for each venture and describe the type of financing each venture is likely to be seeking and identify potential sources for that financing.

  Effect of financial leverage

The Effect of Financial Leverage and working capital management

  Evaluate the basis for the payment to the lender

Evaluate the basis for the payment to the lender and basis for the payment to the company-counterparty.

  Importance of opps, ipps, mpfs and dmepos

Research and discuss the differences and importance of : OPPS, IPPS, MPFS and DMEPOS.

  Time value of money

Time Value of Money project

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd