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1. Given the following information, what is the desired profit margin? D/E = 2 current profit margin = 10% R = 0.6 capital intensity ratio

1. Given the following information, what is the desired profit margin?

D/E = 2 current profit margin = 10% R = 0.6 capital intensity ratio = 2 desired sustainable growth rate = 15%

Select one:

a. 10.1%

b. 13.4%

c. 14.5%

d. 16.8%

e. 18.1%

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