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Robotics desires a sustainable growth rate of 9.5 percent while maintaining a 30 percent dividend payout ratio and a 12 percent profit margin. The company has a capital intensity ratio of .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

Robotics desires a sustainable growth rate of 9.5 percent while maintaining a 30 percent dividend payout ratio and a 12 percent profit margin. The company has a capital intensity ratio of .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

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Robotics desires a sustainable growth rate of 9.5 percent while maintaining a 30 percent dividend payout ratio and a 12 percent profit margin. The company has a capital intensity ratio of .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
Transcribed Image Text:Robotics desires a sustainable growth rate of 9.5 percent while maintaining a 30 percent dividend payout ratio and a 12 percent profit margin. The company has a capital intensity ratio of .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
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