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1. WVU Corporation has a sustainable growth rate of 15%, total assets to sales ratio of...

1. WVU Corporation has a sustainable growth rate of 15%, total assets to sales ratio of 1.5, profit margin of 10%, and dividend payout of 50%. What is the firm’s target D/E ratio?

Select one:

a. 2.33

b. 2.67

c. 2.91

d. 3.33

e. 3.91

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