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Question 7 DJJP wants to maintain its current sustainable growth rate. At the moment it is 3.29%. DJJP also wants to maintain its DPR (dividend

Question 7

DJJP wants to maintain its current sustainable growth rate. At the moment it is 3.29%.

DJJP also wants to maintain its DPR (dividend payout ratio) @ 46.00%.

DJJP currently has a profit margin of 7.00% which they also want to maintain.

DJJP has a capital intensity ratio of 1.5.

Which equity multiplier (EM) is needed to maintain the growth rate desired?

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