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A firm has a retention ratio of 42 percent and a sustainable growth rate of 9.00 percent. The capital intensity ratio is 1.52 and the
A firm has a retention ratio of 42 percent and a sustainable growth rate of 9.00 percent. The capital intensity ratio is 1.52 and the debt-equity ratio is .77. What is the profit margin?
A)18.4 percent
B)11.11 percent
C)19.66 percent
D)16.88 percent
E)12.93 percent
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