Wishes to maintain constant debt

Wishes to maintain constant debt–equity ratio

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Reference no: EM131980809

A firm wishes to maintain a growth rate of 11.5 percent and a dividend payout ratio of 30 percent. The ratio of total assets to sales is constant at 0.60, and profit margin is 6.2 percent. If the firm also wishes to maintain a constant debt–equity ratio, what must it be?

Reference no: EM131980809

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