What dividend payout ratio is necessary to achieve growth

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Sig, Inc., wishes to maintain a growth rate of 12 percent per year and a debt-equity ratio of .5. The profit margin is 5.4 percent, and the ratio of total assets to sales is constant at 1.63.

Problem 1:
What dividend payout ratio is necessary to achieve this growth rate under these constraints?

Problem 2: Is this growth rate possible?

Problem 3: What is the maximum sustainable growth rate possible given these constraints?

Reference no: EM132795734

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