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Which of the following will increase the sustainable rate of growth for a firm? I. Decreasing the profit margin II. Increasing the dividend payout ratio

Which of the following will increase the sustainable rate of growth for a firm?

I. Decreasing the profit margin

II. Increasing the dividend payout ratio

III. Decreasing the capital intensity ratio

IV. Increasing the target debt-equity ratio

1. I and II only

2. III and IV only

3. II and IV only

4. I, III and IV only

5. I, II, III and IV

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