Maintain growth rate-constant debt-equity rate

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A firm wishes to maintain a growth rate of 12 percent and a dividend payout ratio of 58 percent. The ratio of total assets to sales is constant at 1, and the profit margin is 8.6 percent. If the firm also wishes to maintain a constant debt-equity ratio, what must it be? (Do not round your intermediate calculations.)

Reference no: EM131021197

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