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:

Coaxial

A type of electrical cable that has an inner conductor surrounded by a tubular insulating layer, surrounded by a tubular conducting shield, often used for transmitting television signals and internet connections.

Coaxial

A type of cable with an inner conductor surrounded by a tubular insulating layer, used widely for transmitting television signals and internet connectivity.

Cable Medium

A type of physical transmission medium that uses cables, such as coaxial or fiber optics, to transmit data.

Broadcast Medium

Any medium used to transmit information, entertainment, or other messages to a wide audience, typically involving radio, television, or the internet.