Question: The increase in capacity will decrease the firm s need for additional assets and, thus, reduce its need for external financing. The shift to full
The increase in capacity will decrease the firms need for additional assets and, thus, reduce its need for external financing. The shift to full capacity will also decrease the capital intensity ratio, which suggests that the firm is producing less sales per dollar of assets.
The increase in capacity will increase the firms need for additional assets and, thus, reduce its need for external financing. The shift to full capacity will also increase the capital intensity ratio, which suggests that the firm is producing more sales per dollar of liabilities.
The increase in capacity will decrease the firms need for additional assets and, thus, reduce its need for external financing. The shift to full capacity will also decrease the capital intensity ratio, which suggests that the firm is producing more sales per dollar of assets.
The increase in capacity will reduce the firms need for additional assets and, thus, reduce its need for external financing. The shift to full capacity will also increase the capital intensity ratio, which suggests that the firm is producing more sales per dollar of liabilities
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