What is the maximum rate of sales growth

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While analyzing financial statement information for a public company you observe the following information for the most recent year:

Profit Margin = 10%
Return on Equity = 25%
Debt to Equity Ratio = 1
Dividend Plowback Rate = 80%
Return on Assets = 15%
Total Asset Turnover = 2.5
Inventory Turnover = 5.0

Problem 1: Based on the information above what is the maximum rate of sales growth that the company can sustain if the company is not willing to take on any additional debt?

Reference no: EM132658500

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