Fixed Appliance Co

question 58

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

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Definitions:

Stepping-stone Method

A procedure used in linear programming to find the optimal solution for transportation problems by iteratively improving the current solution.

Initial Optimum Solution

The best initial solution found through analysis or computation that meets the criteria or constraints of a particular problem.

Empty Cells

Unfilled positions or spaces in a spreadsheet, table, or physical layout, often indicating a lack of data or resources.