As the Dividend Payout Ratio Declines, More External Funds Are

question 38

True/False

As the dividend payout ratio declines, more external funds are required.

---

Definitions:

Production Function

An equation or model that describes the relationship between inputs used in production and the output of goods or services.

Capital

The financial assets or resources that businesses and individuals use to invest, produce goods and services, including buildings, machinery, and equipment.

Output

The quantity of goods or services produced in a given period by a firm, industry, or country.

Unit of Labor

A measurement in economics referring to one hour of work or its equivalent output by a worker.