Use this key fi nancial data from the most recent annual report of Rancho Inc. to answer the questions that follow. Sales $12.7 million Net income $ 1.3 million Total assets $ 7.6 million Total equity...

Use this key fi nancial data from the most recent annual report of Rancho Inc. to answer the questions that follow. Sales $12.7 million Net income $ 1.3 million Total assets $ 7.6 million Total equity $ 5.2 million Dividends $ 0.3 million The fi rm’s CFO wishes to use this data to estimate the fi rm’s sustainable growth rate. a. Use the data provided to calculate Rancho’s net profi t margin, assets-toequity ratio, total asset turnover ratio, and its dividend payout ratio. b. Use your fi ndings in part (a) to fi nd Rancho’s sustainable growth rate . c. Interpret the sustainable growth rate calculated in part (b). Does this rate of growth assure shareholder wealth maximization? Explain. d. If the fi rm’s Board feels that it is best for its shareholders if the fi rm grows more slowly, what alterations in each of the baseline assumptions would be necessary to achieve this objective?