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P1 Fix-It Co. wishes to maintain a growth rate of 9.89 percent a year, a...

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Accounting

P1

Fix-It Co. wishes to maintain a growth rate of 9.89 percent a year, a constant debt-equity ratio of .42, and a dividend payout ratio of 40 percent. The ratio of total assets to sales is constant at 1.3. What profit margin must the firm achieve?

P2

ABC, Inc., had equity of $180,000 at the beginning of the year. At the end of the year, the company had total assets of $335,000. During the year, the company sold no new equity. Net income for the year was $38,000 and dividends were $5,200.

a. Calculate the internal growth rate for the company.(Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

b. Calculate the internal growth rate using ROA bfor beginning of period total assets.(Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

c. Calculate the internal growth rate using ROA bfor end of period total assets.(Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

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