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(a) YiYu Manufacturer wishes to maintain a growth rate of 6 percent a year, a debt-equity ratio of 0.45, and a dividend

Posted: Fri Jul 01, 2022 7:36 am
by answerhappygod
A Yiyu Manufacturer Wishes To Maintain A Growth Rate Of 6 Percent A Year A Debt Equity Ratio Of 0 45 And A Dividend 1
A Yiyu Manufacturer Wishes To Maintain A Growth Rate Of 6 Percent A Year A Debt Equity Ratio Of 0 45 And A Dividend 1 (67.97 KiB) Viewed 27 times
(a) YiYu Manufacturer wishes to maintain a growth rate of 6 percent a year, a debt-equity ratio of 0.45, and a dividend payout ratio of 30 percent. The ratio of total assets to sales is constant at 1.25. Calculate the profit margin the firm must achieve. (4 marks) (b) Your brother invested RM5,000 twenty years ago with an insurance company that paid him 5 percent simple interest on his funds. You invested RM5,000 twenty years ago in a fund that has paid you 5 percent interest, compounded annually. Who will earn more and why? By how much? (4 marks)