All else the same, an increase in a firm's dividend payout ratio will decrease its external financing needed.

Name: All else the same, an increase in a firm's dividend payout ratio will decrease its external financing needed.
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An increase in a firm's dividend payout ratio means it is distributing more of its earnings to shareholders, leaving less retained earnings for reinvestment. This could increase the need for external financing to fund new investments or operations.

All Else the Same, an Increase in a Firm's Dividend