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)
