Fixed Appliance Co

Multiple Choice

Fixed Appliance Co.wishes to maintain a growth rate of 8 percent a year,a constant debt-equity ratio of 0.42,and a dividend payout ratio of 50 percent.The ratio of total assets to sales is constant at 1.3.What profit margin must the firm achieve?

A) 12.92 percent
B) 13.46 percent
C) 13.56 percent
D) 14.33 percent
E) 14.74 percent