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Problem:

A firm wants a sustainable growth rate of 3.43 percent while maintaining a 33 percent dividend payout ratio and a profit margin of 7 percent. The firm has a capital intensity ratio of 2.

Required:

Question: What is the debt-equity ratio that is required to achieve the firm's desired rate of growth?

Note: Show all workings.

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M91149300

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