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Hello, can you help me with the following exercise? 53.A firm wants a sustainable growth rate of 2.68 percent while maintaining a 40 percent dividend
Hello, can you help me with the following exercise?
53.A firm wants a sustainable growth rate of 2.68 percent while maintaining a 40 percent dividend payout ratio and a 6 percent profit margin. The firm has a capital intensity ratio of 2. What is the debt-equity ratio that is required to achieve the firm's desired rate of growth?
a..42
b..45
c..49
d..52
e..54
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