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Your company wants a sustainable growth rate of 3.45% while maintaining a 30 percent dividend payout ratio and a 7% profit margin. The company has

Your company wants a sustainable growth rate of 3.45% while maintaining a 30 percent dividend payout ratio and a 7% profit margin. The company has a capital intensity ratio of 1.5. What is the equity multiplier that is required to achieve the company's desired rate of growth?

A. .45

B. .55

C. .78

D. .98

E. 1.02

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