What will firm new net profit margin have to be in order

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Reference no: EM13937510

Rowan Company has a net profit margin of 8.3 percent, debt ratio of 58 percent, total assets of $5,106,200, sales of $6,663,600, and a dividend payout ratio of 62 percent. The firm’s management desires a sustainable growth rate (SGR) of 15 percent but does not wish to change the company’s level of debt or its payout ratio.

What will the firm’s new net profit margin have to be in order to achieve the desired growth rate? (Round intermediate calculation to 2 decimal places, e.g. 5.25 and final answer to 1 decimal place, e.g. 17.5%)

Net Profit Margin =____%

Reference no: EM13937510

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