Dal. Corp has an 8% profit margin and a .9 ratio of capital intensity. The firm maintains a 40% dividend payout ratio and a 10% rate of growth. The company wishes to keep its debt-equity ratio constant. What must the debt-equity ratio be?© BrainMass Inc. brainmass.com June 3, 2020, 7:30 pm ad1c9bdddf
Some lines of calculation to work out what must be the debt-equity of Dal. Corp if it maintains growth and payout ratio.