A Firm Is Currently Operating at Full Capacity

question 5

Multiple Choice

A firm is currently operating at full capacity. Net working capital, costs, and all assets vary directly with sales. The firm does not wish to obtain any additional equity financing. The dividend payout ratio is constant at 40 percent. If the firm has a positive external financing need, that need will be met by:

• A) accounts payable.
• B) long-term debt.
• C) fixed assets.
• D) retained earnings.
• E) common stock.

---

Definitions:

Active Contributors

Individuals or entities actively participating or adding value to a process or project.

Own Development

The personal growth and evolution over time in various aspects, such as physical, mental, emotional, and social.

Nature-Nurture Issue

The ongoing debate in psychology and biology on the relative contributions of genetic predispositions (nature) and environmental factors (nurture) to human development and behavior.

Developmental Scientists

Researchers who focus on studying how humans grow and change over the course of their lives.