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ABC Inc Has Total Assets of $550,000 and a Debt Ratio

Question 87

Multiple Choice

ABC Inc. has total assets of $550,000 and a debt ratio of 60 percent. If last year's sales were $950,000 and sales are expected to grow 10 percent in the future, what is ABC Inc. capital intensity ratio?


A) 1.72
B) 0.52
C) 1.90
D) 0.58

Correct Answer:

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