A firm’s profit margin is 5 percent, its debt/assets ratio is 56 percent, and its dividend payout ratio is 40 percent.

Business

1 answer:

beks73 [17]3 years ago

3 0

Answer:

The given statement is FALSE.

Explanation:

It will only be till sustainable growth rate that the firm will not require external financing. The debt /ratio demands resources to sustain the operation, which are not powered by the profit margin.

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