An All Equity Financed Firm Has an Asset Turnover of 2,and

question 26

Multiple Choice

An all equity financed firm has an asset turnover of 2,and its plowback ratio is 50%.Determine its Maximum payout ratio that will allow an 8% internally generated growth.

• A) 25%
• B) 33%
• C) 45%
• D) 67%

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