Holding all other things constant, additional debt financing needed would be reduced with an INCREASE in the firm's:
A)dividend payout
B)return on Sales
C)cost Ratio
D)tax Rate

Question

Quizplus · Accepted Answer

A higher return on sales means the firm is generating more revenue per dollar spent, which can result in higher profits and cash flows. This can allow the firm to rely less on debt financing and instead finance its operations through its own earnings.

Holding All Other Things Constant, Additional Debt Financing Needed Would