What is the maximum sustainable growth rate

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Reference no: EM132602345

Sig, Inc., wishes to maintain a growth rate of 13 percent per year and a debt-equity ratio of .5. The profit margin is 5.5 percent, and the ratio of total assets to sales is constant at 1.58.

What dividend payout ratio is necessary to achieve this growth rate under these constraints?

a. Payout Ratio?

b. Is this growth rate possible?

What is the maximum sustainable growth rate possible given these constraints?

c. Sustainable Growth rate?

Reference no: EM132602345

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