Suppose a Firm with a Positive Net Worth Is Operating

question 46

True/False

Suppose a firm with a positive net worth is operating its fixed assets at full capacity and its dividend payout ratio is 100%,and 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:

Team-Oriented

An approach or work culture that emphasizes collaboration, teamwork, and collective effort towards common objectives.

Role Congruity Theory

A theory suggesting that individuals are perceived more favorably when their behaviors are congruent with the roles traditionally associated with their social groups.

Underrepresentation

The inadequate or disproportionately low representation of a particular group or category within a certain context or field.

Dysfunctional

Having a negative effect on the functioning of a system, organization, or relationship, often preventing it from operating in a normal or effective way.