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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