What is the required total margin

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Question - Your firm's strategic plan calls for a net increase in total assets of $100 million during the next five years, which represents an annual compounded growth rate of 15%. Equity growth is also projected to be 15% per year. Assume that the firm's total asset turnover will average 1.0 in each of the five years and equity financing percentages will remain constant 50%. The firm projects reported income index values to be 0.85 each year. What is the required total margin that will make this plan financially feasible?

Reference no: EM132860270

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