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Given the following information (assuming no taxes),ROCE = 22%; D/V = 60%; Cost of Debt = 12%; Payout ratio= 30%; Target 'g' = 30% a.

Given the following information (assuming no taxes),ROCE = 22%; D/V = 60%; Cost of Debt = 12%; Payout ratio= 30%; Target 'g' = 30%

a. What is the implied growth rate?

b. For target 'g', assuming other things remain constant, what is revised ROCE?

c. For target 'g', assuming other things remain constant, what is revised D/V?

d. For target 'g', assuming other things remain constant, what is revised payout? e. Comment on this framework in suggesting future course of action.

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