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To outstrip the market
Stora Enso's growth must exceed market growth and match that of its best competitors. Growth will be achieved mainly through mergers and acquisitions. The target for return on capital employed over the cycle is 13%, compared with a current average cost of capital of 10% before tax.
Debt to equity should be at or below 0.8, but may be allowed to rise temporarily to 1.0-1.2 to finance a major strategic acquisition provided the return route to the target level can be clearly seen. Acquisitions should enhance earnings.
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