The ratio of total assets to sales is constant at 1 and the


A firm wishes to maintain a growth rate of 10 percent and a dividend payout ratio of 66 percent. The ratio of total assets to sales is constant at 1, and the profit margin is 9.6 percent. If the firm also wishes to maintain a constant debt-equity ratio, what must it be? (Do not round your intermediate calculations.)

a. 5.43

b. 1.79

c. 6.43

d. 4.43

e. 3.43

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Finance Basics: The ratio of total assets to sales is constant at 1 and the
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