Question
A firm wants a sustainable growth rate of 3.13 percent while maintaining a 27 percent dividend payout ratio and a profit margin of 6 percent.
A firm wants a sustainable growth rate of 3.13 percent while maintaining a 27 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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College Mathematics For Business Economics, Life Sciences, And Social Sciences
Authors: Raymond Barnett, Michael Ziegler, Karl Byleen, Christopher Stocker
14th Edition
0134674146, 978-0134674148
