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A firm wishes to maintain an internal growth rate of 4.5 percent and a dividend payout ratio of 60 percent. The current profit margin is

A firm wishes to maintain an internal growth rate of 4.5 percent and a dividend payout ratio of 60 percent. The current profit margin is 7.5 percent, and the firm uses no external financing sources. What must be the total asset turnover?

Solution: I know that Internal growth rate = .045 = [.075 TAT (1 .60)]/{1 [.075 TAT (1 .60)]}

TAT = 1.44

BUT! HOW CAN I SOLVE FOR X (TAT)? show me the steps.

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