If Any Firm with a Positive Net Worth Is Operating

question 8

True/False

If any firm with a positive net worth is operating its fixed assets at full capacity, if its dividend payout ratio is 100 percent, and if it wants to hold all financial ratios constant, then for any positive growth rate in sales, the firm will require external financing.

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Definitions:

Unconscious Wish Fulfillment

A concept in psychoanalytic theory where unconscious desires are expressed in dreams and fantasies.

Dissociation

Dissociation is a psychological experience of feeling disconnected from one's thoughts, feelings, memories, or sense of identity.

Activation-Synthesis

A theory proposing that dreams result from the brain's attempt to make sense of neural activity that occurs during sleep, particularly during REM sleep phases.

Consolidation

The process by which short-term memories are transformed into long-term memories, making them more stable and enduring.