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A firm has decided that its optimal capital structure is 1 0 0 % equity - financed. It perceives its optimal dividend policy to be

A firm has decided that its optimal capital structure is 100% equity-financed. It perceives its optimal dividend policy to be a 40% payout ratio. Asset turnover is sales/assets =0.6, the profit margin is 10%, and the firm has a target growth rate of 4%.
b. If the firms target growth rate is not consistent with its other goals, what would asset turnover need to be to achieve its goals?
Note: Do not round intermediate calculations. Round your answer to 3 decimal places.

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