What will the firms new net profit margin

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Rowan Company currently has a net profit margin of 8.3 percent, debt ratio of 43 percent, total assets of $4,346,703, sales of $5,724,548, and a dividend payout ratio of 55 percent. The firm’s management desires a sustainable growth rate (SGR) of 13 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?

Reference no: EM131044663

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