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What equity multiplier is required to achieve the company

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Reference no: EM133000149

Problem 1: Robotics desires a sustainable growth rate of 12.7 percent while maintaining a constant dividend payout ratio of 25 percent and a profit margin of 12 percent. The company has a capital intensity ratio of 0.95. What equity multiplier is required to achieve the company's desired rate of growth?

A. 0.84
B. 0.98
C. 1.02
D. 1.19
E. 1.11

Reference no: EM133000149

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