If a Firm with a Positive Net Worth Is Operating

question 31

True/False

If a firm with a positive net worth is operating its fixed assets at full capacity, if its dividend payout ratio is 100%, and if it wants to hold all financial ratios constant, then for any positive growth rate in sales, it will require external financing.

---

Definitions:

3M Model

A framework that suggests motivation, ability, and opportunity as key factors influencing behavior.

Magnet Approach

A marketing strategy that attracts customers by offering valuable content, services, or experiences, rather than through direct sales pitches.

Consumer Engagement

The relationship between consumers and a brand or product, often manifested through interactive or participatory activities.

UGC Campaigns

User-Generated Content (UGC) campaigns involve the creation and promotion of content by unpaid contributors or fans, often used for marketing purposes.