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1. A firm wants a sustainable growth rate of 2.73% while maintaining a dividend payout ratio of 39% and a profit margin of 6 percent.

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1. A firm wants a sustainable growth rate of 2.73% while maintaining a dividend payout ratio of 39% and a profit margin of 6 percent. The firm can generate $0.5 in sales for every dollar in assets. What is the debt-equity ratio that is required to achieve the firm's desired rate of growth? A. 0.45 times B. 0.24 times C. 0.61 times D. 0.55 times E. 0.73 times

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