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A firm has a retention ratio of 36 percent and a sustainable growth rate of 10.90 percent. The capital intensity ratio is 1.34 and the
A firm has a retention ratio of 36 percent and a sustainable growth rate of 10.90 percent. The capital intensity ratio is 1.34 and the debt-equity ratio is .71. What is the profit margin?
Please show all work so I understand, review will not be given if work is not shown.
a. 22.73 percent
b. 15.97 percent
c. 27.30 percent
e. 21.39 percent
f. 20.37 percent
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