What profit margin must the firm achieve

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Reference no: EM13292092

McCormac Co. wishes to maintain a growth rate of 12 percent a year, a debt-equity ratio of 1.20, and a dividend payout ratio of 30 percent. The ratio of total assets to sales is constant at .75.


What profit margin must the firm achieve? (Do not round your intermediate calculations.)

a. 21.65%
b. 5.47%
c. 5.22%
d. 12.18%
e. 9.28%


Reference no: EM13292092

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