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A firm wants a sustainable growth rate of 3.23 percent while maintaining a 29 percent dividend payout ratio and a profit margin of 8 percent.
A firm wants a sustainable growth rate of 3.23 percent while maintaining a 29 percent dividend payout ratio and a profit margin of 8 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? |
0.90
0.55
0.21
0.10
0.71
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