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:

Territorial Trespassing

The act of entering or encroaching on a property or domain without the owner's or the authority's permission.

Caution Signals

Indicators or signs that alert individuals to potential hazards or the need for careful attention.

Disagreement Signals

Non-verbal or verbal cues indicating a difference in opinion or objection between individuals.

Sales Presentation

A formal talk or demonstration given by a salesperson to showcase a product or service's features and benefits, aiming to persuade potential buyers.