Marcie's Mercantile wants to maintain its current dividend policy,which is a payout ratio of 40%.The firm does not want to increase its equity financing but is willing to maintain its current debt-equity ratio.Given these requirements,the maximum rate at which Marcie's can grow is equal to:
A) 60% of the internal rate of growth.
B) 40% of the internal rate of growth.
C) the sustainable rate of growth.
D) the internal rate of growth.
E) 60% of the sustainable rate of growth.
Correct Answer:
Verified
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