Question $1$

Select the statement that is most correct.

Suppose a firm is operating its fixed assets below $100$ percent capacity $($and assuming that sell or lease these assets$)$ but is at $100$ percent with respect to current assets. If sales grow. can offset the needed increase

If a firm retains all of its earnings, then it will not need any additional funds to support sales

If a firm forecasts a large need for additional funds needed, a good strategy to raise the cap increase the dividend payout rate.

Additional funds needed are typically raised from some combination of notes payable, lons bonds, and common stock. These accounts are nonspontaneous in that they require an exp financing decision to increase them.