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A company wants a sustainable growth rate of 2.69 while maintaining a 40% dividend payout raito and a profit margin of 5 percent. The company
A company wants a sustainable growth rate of 2.69 while maintaining a 40% dividend payout raito and a profit margin of 5 percent. The company has a capital intensity ratio of 1.5. What equity multiplier is requried to achieve the company's desired rate of growth
A.1.31
B. 1.91
C. 1.24
D. 1.95
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