Problemr n c inc desires a sustainable growth rate of 45, Ask an Expert

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Problem:

R. N. C., Inc. desires a sustainable growth rate of 4.5 percent while maintaining a 40 percent dividend payout ratio and a 6 percent profit margin. The company has a capital intensity ratio of 1.23.

Required:

Question: What equity multiplier is required to achieve the company's desired rate of growth?

Note: Please show how to work it out.

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Category:- Basic Finance
Reference No.:- M91148816

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