A firm's profit margin is 5 percent, its debt/assets ratio is 56 percent, and its dividend payout ratio is 40 percent.
If the firm is operating at less than full capacity.
Then sales could increase to some extent without the need for external funds, but if it is operating at full capacity with respect to all assets, including fixed assets, then any positive growth in sales will require external financing.
Would this be True or False and why?
Answers (1)
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “A firm's profit margin is 5 percent, its debt/assets ratio is 56 percent, and its dividend payout ratio is 40 percent. If the firm is ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers
You Might be Interested in
Determine the value of the investment at the end of 5 years. Write a function f that determines the value of the investment (in dollars) in terms of the number of years t since the investment was made.
Answers (1)
Which of the following statement is true? A) any project management software can be used on any project efficiently. B) Project management software is only useful with a knowledgeable human operator.
Answers (2)
What type of goods are commonly used with other goods? durable substitution diminishing complementary
Answers (1)
Which statement describes an opportunity cost that could result from the government regulating businesses? A) Less recalls occur as a result of government regulations. B) Government regulations can lead to an increase in product safety.
Answers (2)
What unique issues and solutions might be involved in managing global systems projects?
Answers (1)
New Questions in Business
Jesse is thinking about buying an entertainment system that will cost $1,800. The store will finance the purchase for 12 months at 20 percent interest. His payments will be $166.74. How much will he pay in interest over the life of the loan?
Answers (1)
Which strategy for merging two distinct cultures is most appropriate when the two merging companies are in unrelated industries or operate in different countries because the most appropriate cultural values tend to differ by industry and national
Answers (1)
What is the safest way to dispose of old bank account statements?
Answers (1)
Whats the difference between financial planning and financial goals
Answers (1)
The Brights are buying a home from the Stones. They are splitting the escrow service fees 50-50. Do they live in Northern or Southern California?
Answers (1)