please answer both parts! a. Assume the following ratios are constant:...
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Finance
please answer both parts!
a.
| Assume the following ratios are constant: |
| Total asset turnover | 3.1 | ||
| Profit margin | 6.0 | % | |
| Equity multiplier | 1.5 | ||
| Payout ratio | 20 | % | |
| What is the sustainable growth rate? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) |
b.
| Hodgkiss Mfg., Inc., is currently operating at only 92 percent of fixed asset capacity. Current sales are $780,000. How fast can sales grow before any new fixed assets are needed? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) |
maximum sales growth ______%
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