Firm can increase sustainable rate of growth by decreasing

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Reference no: EM132050201

1. According to CAPM estimates, what is the cost of equity for a firm with a beta of 1.5 when the risk-free interest rate is 6% and the expected return on the market portfolio is 15%?

2. A firm can increase its sustainable rate of growth by decreasing its:

A. Equity mulitplier

B. Target debt-equity ratio

C. Dividends

D. Profit margin

E. Total asset turnover

Reference no: EM132050201

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