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4) Metronic firm has $70M in equity and $30M in debt and forecasts S14M in net income for the vear. It currently pays dividends

4) Metronic firm has $70M in equity and $30M in debt and forecasts S14M in net income for the vear. It currently pays dividends equal to 20% of its net income. You are analyzing a potential change in payout policy -an increase in dividends to $30% of net income. How wNOuld this change affect your internal and sustainable growth rates?

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