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A firm desires a sustainable growth rate of 13.3273% while maintaining a 30 percent dividend payout ratio and an 8% profit margin. The firm has
A firm desires a sustainable growth rate of 13.3273% while maintaining a 30 percent dividend payout ratio and an 8% profit margin. The firm has a total asset turnover ratio of 1.5. What is the debt-equity ratio that is required to achieve the firm's desired rate of growth?A. 28 % B. 35% C. 40 % D. 44% E. 52%
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