Suppose That a Firm's Profit Margin Is 5%, Its Debt/assets

Suppose that a firm's profit margin is 5%, its debt/assets 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; however, but if it is operating at full capacity with respect to all assets, including fixed assets, then any positive growth in sales will require some external financing.