Achieve the firm desired rate of growth

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1) A firm wants a sustainable growth rate of 3.63 percent while maintaining a dividend payout ratio of 37 percent and a profit margin of 6 percent. The firm has asset turnover of 0.5. What is the debt-equity ratio that is required to achieve the firm's desired rate of growth? [calculate ROE, and then use Du Pont analysis to calculate equity multiplier. Equity multiplier is equal to 1+D/E]

Reference no: EM132816153

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