
Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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Transcribed Image Text:Tinsley, Incorporated, wishes to maintain a growth rate of 17.75 percent per year and a debt-equity ratio of 1.25. The profit margin is 4.1
percent, and total asset turnover is constant at 1.01.
a. What is the dividend payout ratio?
Note: A negative answer should be Indicated by a minus sign. Do not round Intermediate calculations and enter your answer
as a percent rounded to 2 decimal places, e.g., 32.16.
b. What is the maximum sustainable growth rate for this company?
Note: Do not round Intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.
a. Dividend payout ratio
b. Sustainable growth rate
%
%
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