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    Jackson1248's Avatar
    Jackson1248 Posts: 1, Reputation: 1
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    #1

    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: 15,681, Reputation: 1012
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    #2

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

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