If Your fiRm Is Currently Operating at Full Capacity and You

Multiple Choice

If your firm is currently operating at full capacity and you expect strong sales growth over the next few years, you should most likely:

A) Expect that assets will not grow.
B) Raise your dividend payout to accommodate the growth.
C) Put off any further financial planning until sales growth moderates.
D) Expect external financing will be needed.
E) Expect the growth in retained earnings to outpace the growth in sales.