Quiz Ch 04 – Capital Intensity Ratio and Fixed Asset Requirements
Fundamentals of Corporate Finance
Ross, Westerfield, and Jordan
13th Edition
Which capital intensity ratio represents the lowest requirement for fixed assets per dollar of sales?
Which capital intensity ratio represents the lowest requirement for fixed assets per dollar of sales?
Which statement regarding Carew-Gonzales Corporation’s next year pro forma statements is correct, given its current operating capacity, tax rate, fixed dividend payout ratio, and aversion to external financing?
Which statement accurately describes a characteristic of financial plans?
Which of the following are included in the financial planning process?
What is the best way to describe the internal growth rate of a firm in terms of achievable growth rate and financing options?
How can the sustainable growth rate of a firm be best described in terms of achievable growth rate and financing options?
Which factor will increase the internal rate of growth, assuming all else is constant?
What is the name of the financial planning method that utilizes projected sales levels to determine changes in the balance sheet and income statement accounts?
If a company is already operating at full capacity and has a positive external financing requirement, which funding source will be utilized, given a constant dividend payout ratio and a reluctance to issue additional equity?
Based on a pro forma statement that predicts a 7 percent increase in both sales and fixed assets, what assumption can be made about the firm?