Question: Discretionary financing needs will be higher if ________. Assume all else equal. A. the firm's net profit margin increases B. sales decline C. the dividend

Discretionary financing needs will be higher if ________. Assume "all else equal."

A. the firm's net profit margin increases

B. sales decline

C. the dividend payout ratio is raised

D. excess capacity exists for fixed assets

C is correct answer: the dividend payout ratio is raised

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