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. 1. true2. false

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22 January, 20:46

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. 1. true2. false

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Mohamed Parsons · Answer 1

True

Explanation:The Dividend pay out ratio of a company is the ratio of the total devidend paid to shareholders in relation to the net income earned by the company during a financial year.

Fixed assets are assets purchased in order to be used on the long term, theses types of assets are not usually converted in the short term for money, fixed assets includes buildings, land etc.