Assume All Else Remains the Same

question 95

Multiple Choice

Assume all else remains the same.Which of the following statements is true?

• A)The lower a firm's profit margin,the more discretionary financing a firm will require.
• B)The higher a firm's profit margin,the more discretionary financing a firm will require.
• C)The lower a firm's profit margin,the more cash a firm will have to reinvest.
• D)A relationship between a firm's profit margin and its requirement for external financing does not exist.

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