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:

Granulosa Cells

Cells found in the ovarian follicles that are involved in the maturation of the oocyte and the production of estrogen.

Secondary Follicle

Follicle in which the secondary oocyte is surrounded by granulosa cells at the periphery; contains fluid-filled antral spaces.

Ovulation

The process in the female reproductive cycle where a mature egg is released from the ovary into the fallopian tube.

Implantation

The process by which a fertilized egg attaches itself to the lining of the uterus, marking the beginning of pregnancy.