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Your company wants to grow by 4% next year. The target debt-equity ratio is 0.7 and payout ratio is 40%. The company has a profit

Your company wants to grow by 4% next year. The target debt-equity ratio is 0.7 and payout ratio is 40%. The company has a profit margin of 20% and a total asset turnover of 1.3.

Attempt 1/3 for 10 pts.

What is the sustainable growth rate?

What payout ratio is consistent with the desired growth rate of 4%?

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