A firm with 30% total debt ratio,total assets of $10 million,and an ROE of 14% has been paying out 60% of earnings to shareholders in the form of dividends.Sales are expected to increase by 10% this year,a faster growth rate than usual.Will external funding be required under these conditions? Will the debt-equity ratio remain constant?

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The Answer of A firm with 30% total debt ratio,total assets of $10 million,and an ROE of 14% has been paying out 60% of earnings to shareholders in the form of dividends.Sales are expected to increase by 10% this year,a faster growth rate than usual.Will external funding be required under these conditions? Will the debt-equity ratio remain constant?

A Firm with 30% Total Debt Ratio,total Assets of $10