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A firm wants a sustainable growth rate of 2.70 percent while maintaining a 36 percent dividend payout ratio and a profit margin of 6 percent.

A firm wants a sustainable growth rate of 2.70 percent while maintaining a 36 percent dividend payout ratio and a profit margin of 6 percent. The firm has a capital intensity ratio of 2. What is the debt-equity ratio that is required to achieve the firm's desired rate of growth?

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