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.

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Definitions:

Sexual Isolation

A form of reproductive isolation where different species are unable to mate or produce fertile offspring due to behavioral or physical differences.

Habitat Isolation

A prezygotic reproductive isolating mechanism in which reproduction between similar species is prevented because they live and breed in different habitats.

Interbreed

To produce offspring by mating individuals of different species, breeds, varieties, etc.

Black Bears

A species of bear native to North America, known for its varied diet and adaptability to different habitats.