Chadron Motors has a profit margin of 5 percent and a dividend payout ratio of 20 percent. The total asset turnover is 1.8 and the debt-equity ratio is .4. What is the sustainable rate of growth? A....

Chadron Motors has a profit margin of 5 percent and a dividend payout ratio of 20 percent. The total asset turnover is 1.8 and the debt-equity ratio is .4. What is the sustainable rate of growth?

• A. 9.17 percent


• B. 9.84 percent


• C. 11.21 percent


• D. 10.52 percent


• E. 8.51 percent

Chadron 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 1.36. What profit margin must the firm achieve?

• A. 13.73 percent


• B. 14.37 percent


• C. 8.13 percent


• D. 14.79 percent


• E. 13.31 percent

Chadron Markets is operating at full capacity with a sales level of $547,200 and fixed assets of $560,000. The profit margin is 5.4 percent. What is the required addition to fixed assets if sales are to increase by 4 percent?

• A. $14,680


• B. $10,709


• C. $18,840


• D. $16,760


• E. $22,400.                                        Please answer complete