What maximum growth rate can abbai achieve

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Reference no: EM13297296

Abbai, Inc. has profit margin 15%, total asset turnover 0.8, equity multiplier 1.25, and dividend payout ratio 45%. To support its future growth, the firm plans to raise some debt from creditors while keeping its debt-equity ratio unchanged. What maximum growth rate can Abbai achieve?

Reference no: EM13297296

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