All else the same, the level of external financing needed (EFN) increases with increases in the:

Question

Quizplus · Accepted Answer

The capital intensity ratio, which is a measure of how much capital is needed for a given level of output, directly affects the level of external financing needed (EFN). An increase in the capital intensity ratio means the company needs more assets to support its sales, leading to a higher need for external financing if internal funds are not sufficient.

All Else the Same, the Level of External Financing Needed