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18 19 A firm wants a sustainable growth rate of 2.78 percent while maintaining a dividend payout ratio of 20 percent and a profit margin

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A firm wants a sustainable growth rate of 2.78 percent while maintaining a dividend payout ratio of 20 percent and a profit margin of 4 percent. The firm has a capital intensity ratio of 2. What is the debt-equity ratio that is required to achieve the firm's desired rate of growth? If A7X Company has an ROA of 9 percent and a payout ratio of 20 percer internal growth rate

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