Question
A firm wants a sustainable growth rate of 3.63 percent while maintaining a dividend payout ratio of 37 percent and a profit margin of 6
A firm wants a sustainable growth rate of 3.63 percent while maintaining a dividend payout ratio of 37 percent and a profit margin of 6 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?
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.23 times
-
.93 times
-
.63 times
-
.15 times
-
.85 times
Show work please
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Entrepreneurial Finance
Authors: Steven Rogers
4th Edition
1260461440, 978-1260461442
