If External Financing Needed Cannot Be Obtained Due to Poor

question 9

True/False

If external financing needed cannot be obtained due to poor market conditions,a firm could reduce the amount needed by increasing its retention ratio.

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Definitions:

Coefficient of Alienation

A statistical measure used to quantify the degree of relationship or non-relationship between two variables, often indicating the extent to which they are unrelated.

Unexplained Variance

The portion of the total variance in a dataset that is not accounted for by the statistical model.

Indirect Correlation

A relationship between two variables such that when one variable increases, the other variable tends to decrease, or vice versa, mediated by a third variable.