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A firm wants a sustainable growth rate of 3.18 percent while maintaining a dividend payout ratio of 28 percent and a profit margin of 7
A firm wants a sustainable growth rate of 3.18 percent while maintaining a dividend payout ratio of 28 percent and a profit margin of 7 percent. The firm has a capital intensity ratio of 2. What is the debtequity ratio that is required to achieve the firm's desired rate of growth?
.72 times
.22 times
.61 times
.78 times
.20 times
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