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.

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Definitions:

Survivor Effect

A phenomenon in studies or analyses where those who have survived or continued beyond a certain point are unintentionally selected, potentially skewing results.

Mental Disorder

A condition characterized by disturbances in a person's thought, emotion, or behavior, disrupting their ability to function in daily life.

Polypharmacy

The use of multiple medications by a patient, typically seen in the management of complex or multiple medical conditions, which can increase the risk of adverse drug reactions.

Older People

Individuals who are in the later stages of their life, often defined as being 65 years or older, with varied health, functioning, and social needs.