If a Firm with a Positive Net Worth Is Operating

question 16

True/False

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

---

Definitions:

Retina

The light-sensitive layer of tissue at the back of the inner eye, which converts light images into neural signals sent to the brain.

Occipital Lobe

The region of the brain located at the back of the head, responsible for processing visual information.

Corresponding Location

A place or position that matches or parallels another in context, characteristics, or role, often used in geographical and mathematical references.

Rods

Photoreceptor cells in the retina that are highly sensitive to light and enable vision in low-light conditions.