Question: If spontaneous liabilities (accounts payable, accruals) decrease, how will a firm's need for external funds be affected? (increase or decrease?) If profit margin decreases, how

  1. If spontaneous liabilities (accounts payable, accruals) decrease, how will a firm's need for external funds be affected? (increase or decrease?)

  1. If profit margin decreases, how will a firm's need for external funds be affected? (Hint: Consider how a decrease in profit margin affects the change in retained earnings.) (increase or decrease?)

  1. If dividend payout ratio decreases, how will a firm's need for external funds be affected? (increase or decrease?) (Hint: Consider how a decrease in payout ratio affects the change in retained earnings.)

  1. If dividend payout ratio decreases, how will a firm's need for external funds be affected? (increase or decrease?) (Hint: Consider how a decrease in dividend payout ratio affects the change in retained earnings.)

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