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Question
The capital intensity ratio is generally defined as follows:a. The percentage of liabilities that increase spontaneously as a percentage of sales.
b. The ratio of sales to current assets.
c. The ratio of current assets to sales.
d. The amount of assets required per dollar of sales, or A0*/S0.
e. Sales divided by total assets, i.e., the total assets turnover ratio.
Answer
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Which of the following is not correct for a firm with seasonal sales and customers who all pay promptly at the end of 30 days?
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