What profit margin must the firm achieve

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Reference no: EM13292092

McCormac Co. wishes to maintain a growth rate of 12 percent a year, a debt-equity ratio of 1.20, and a dividend payout ratio of 30 percent. The ratio of total assets to sales is constant at .75.

Required:

What profit margin must the firm achieve? (Do not round your intermediate calculations.)

a. 21.65%
b. 5.47%
c. 5.22%
d. 12.18%
e. 9.28%

Reference no: EM13292092

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