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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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