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A firm seeks maximum growth rate of 3 . 6 8 % by relying on internal and external financing such that the debt - to
A firm seeks maximum growth rate of by relying on internal and external financing such that the debttoequity ratio remains constant. At the same time, the firm wants to maintain a dividend payout ratio of and a profit margin of The firm can generate $ in sales for every $ in assets. What is the debt equity ratio that is required to achieve the firm's desired rate of growth?
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