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Assume that the following ratios are constant. Total asset turnover 1.45 Profit margin 7.5% Equity multiplier 1.3 Payout ratio 65% Required: What is the maximum
Assume that the following ratios are constant. |
Total asset turnover | 1.45 |
Profit margin | 7.5% |
Equity multiplier | 1.3 |
Payout ratio | 65% |
Required: |
What is the maximum growth rate for this firm if it keeps the debt-equity ratio constant and avoids issuing any new shares of stock? (Do not round your intermediate calculations.) |
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5.21%
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5.41%
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-1.13%
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-2.08%
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