Question: protit margm is 5 % , ts debt ratio is 5 6 % , and its dividend payout ratio is 4 0 % . If

protit margm is

5 %,

ts debt ratio is

56 %,

and its dividend payout ratio is

40 % .

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 tespect to all assets, including fixed assets, then any positive growth in sales will require some external financing.

True

False

protit margm is 5 % , ts debt ratio is 5 6 % ,

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