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NewCorp wants a sustainable growth rate of 2.69% while maintaining a 40.00% dividend payout ratio and...

NewCorp wants a sustainable growth rate of 2.69% while maintaining a 40.00% dividend payout ratio and a profit margin of 5 percent. The company has a capital intensity ratio of 1.5. What equity multiplier (EM) is required to achieve the company's desired rate of growth?

A.

1.31
B.

1.91
C.

1.24
D.

1.95
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