A Firm with a Positive Net Worth Is Operating Its

question 22

True/False

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.

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Definitions:

Esterase Locus

A specific location on a chromosome associated with the production of esterase, an enzyme involved in breaking down esters.

Homozygous

Referring to an organism that has two identical alleles for a particular gene or trait.

Diploid

Refers to cells that contain two complete sets of chromosomes, one from each parent, typical for somatic cells in sexually reproducing organisms.