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Assume that the following ratios are constant. Total asset turnover 1.25 Profit margin 6.3% Equity multiplier 1.9 Payout ratio 63% Required: What is the maximum
| Assume that the following ratios are constant. |
| Total asset turnover | 1.25 |
| Profit margin | 6.3% |
| Equity multiplier | 1.9 |
| Payout ratio | 63% |
| Required: |
| What is the maximum growth rate for this firm if it keeps the debt-equity ratio constant and avoidsissuing any new shares of stock? (Do not round your intermediate calculations.) |
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Cases in Finance
Authors: Jim DeMello
3rd edition
1259330476, 1259330478, 9781259352652 , 978-1259330476
