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Marcie's Mercantile wants to maintain its current dividend policy, which is a payout ratio of 35 percent. The firm does not want to increase its
Marcie's Mercantile wants to maintain its current dividend policy, which is a payout ratio of 35 percent. The firm does not want to increase its equity financing but is willing to maintain its current debt-equity ratio. Given these requirements, the maximum rate at which Marcie's can grow is equal to:
the internal rate of growth.the sustainable rate of growth.35 percent of the internal rate of growth.65 percent of the internal rate of growth.65 percent of the sustainable rate of growth.
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