Firm desired rate of growth

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A firm wants a sustainable growth rate of 3.48 percent while maintaining a 34 percent dividend payout ratio and a profit margin of 8 percent. The firm has a capital intensity ratio of 2. What is the debt-equity ratio that is required to achieve the firm's desired rate of growth

Reference no: EM131402454

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Firm desired rate of growth : A firm wants a sustainable growth rate of 3.48 percent while maintaining a 34 percent dividend payout ratio and a profit margin of 8 percent. The firm has a capital intensity ratio of 2. What is the debt-equity ratio that is required to achieve t..
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