Ask Experts Questions for FREE Help !
    Jackson1248's Avatar
    Jackson1248 Posts: 1, Reputation: 1
    New Member

    Feb 6, 2017, 06:16 PM
    Finance Question - Constant debt to equity ratio what must it be
    A firm wishes to maintain a growth rate of 12.4 percent and a dividend payout ratio of 28 percent. The ratio of total assets to sales is constant at 0.60 and the profit margin is 7.1 percent.

    If the firm wishes to maintain a constant debt to equity ratio what must it be?

    Could you please answer using these formulas:

    Sustainable growth rate (SGR)= (ROE*R) / ((1-(ROE*R)

    ROE = p(S/A) (1+D/E)
    ma0641's Avatar
    ma0641 Posts: 15,680, Reputation: 1012
    Uber Member

    Feb 6, 2017, 06:28 PM
    Sorry, WE don't answer. You try and then we help if needed.

Not your question? Ask your question View similar questions


Question Tools Search this Question
Search this Question:

Advanced Search

Add your answer here.

Check out some similar questions!

Given inventories, total assets, current ratio, acid-test ratio, and debt to equity r [ 0 Answers ]

Determine the following 2011 balance sheet items using the information provided in the problem. Current Assets Shareholders’ Equity Noncurrent Assets Long-term liabilities The December 31, 2011, balance sheet revealed the following: Inventories $ 840,000 Total...

Financial ratio limitations - current ratio and debt to equity [ 2 Answers ]

Hi, I have a problem which is as follows; Contracts with lenders, such as bonds typically place restrictions on the financial statement ratios. Two commonly used ratios are the current ratio and the debt-to-equity ratio. Why is it that these appear as restrictions, that is, do they protect the...

What is the Debt to Equity Ratio? [ 4 Answers ]

Profit Margin is 9.2% Return on Equity is 18.67 Asset Turnover Ratio is 1.63

Constant debt-equity ratio [ 1 Answers ]

Merrillan Motors had earnings of $8 million last year. It made $5 million on investment in projects with positive net present values. Pat Collins owns 20% of the firm’s common stock. Assume that Pat desires no change in proportional ownership of Merrillan and the firm wishes to maintain a constant...

View more questions Search