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?
Get 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 there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers
You Might be Interested in
How can producers maximize their profit?
Answers (1)
Suppose that a worker in Boatland can produce either 5 units of wheat or 25 units of fish per year, and a worker in Farmland can produce either 25 units of wheat or 5 units of fish per year. There are 10 workers in each country.
Answers (1)
Church Corporation is a closely held C corporation. All of the stock is owned by Charles and Chanda Church. The corporation, in its second month of operation in its initial tax year, anticipates earning $150,000 of gross income in the current year.
Answers (1)
On May 7, Keenan Company purchased on account 620 units of raw materials at $21 per unit. During May, raw materials were requisitioned for production as follows: 211 units for Job 200 at $19 per unit and 273 units for Job 305 at $21 per unit.
Answers (1)
The aging schedule at December 31, 2020, for Gidget Inc. shows the following breakdown of total accounts receivable.
Answers (1)
New Questions in Business
When a tax is levied on buyers of tea, a. buyers of tea and sellers of tea both are made worse off. b. buyers of tea are made worse off, and the well-being of sellers is unaffected. c.
Answers (1)
Which of the following is not correct? a. A tax places a wedge between the price that buyers pay and the price that sellers receive. b. In the new after-tax equilibrium, buyers and sellers share the burden of the tax. c.
Answers (1)
The major benefit of diversification is the: a. increased expected return. b. removal of all negative risk assets from the portfolio. c. reduction in the portfolio's total risk. d. reduction in the portfolio's systematic risk.
Answers (1)
Dougherty Corporation purchased a new delivery van for use in its dry-cleaning business. As part of the purchase of the van the following costs were incurred: Acquisition cost 30,000, Sales tax 1,800, Title transfer 250, paid to the company logo on
Answers (1)
Horatio Alger is the product manager for Brand X, a consumer product with a retail price of $1.20. Retail margins are 35% while wholesalers take an 11.5% margin.
Answers (1)