Walmart wants to achieve a sustainable growth rate of 3.63% and it wants to keep a same dividend payout ratio of 37% and a profit margin of 6%. Suppose that the firm has a capital intensity ratio of 2. What is the debt to equity ratio that is needed to arrive at the firm's desired rate of growth?
Walmart wants to achieve a sustainable growth rate of 3.63% and it wants to keep a same dividend payout ratio of 37% and a profit margin of 6%. Suppose that the firm has a capital intensity ratio of 2. What is the debt to equity ratio that is needed to arrive at the firm's desired rate of growth?
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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![Walmart wants to achieve a sustainable growth rate of 3.63% and it wants to keep a same dividend payout ratio
of 37% and a profit margin of 6%. Suppose that the firm has a capital intensity ratio of 2. What is the debt to
equity ratio that is needed to arrive at the firm's desired rate of growth?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fd3bf2983-1e99-4043-8c17-051c7d592ef3%2F4fc3a7c4-92e9-41d4-a4bc-0f1646033fbc%2F5xdv09s_processed.png&w=3840&q=75)
Transcribed Image Text:Walmart wants to achieve a sustainable growth rate of 3.63% and it wants to keep a same dividend payout ratio
of 37% and a profit margin of 6%. Suppose that the firm has a capital intensity ratio of 2. What is the debt to
equity ratio that is needed to arrive at the firm's desired rate of growth?
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