If a firm's capital intensity ratio (A0*/S0) decreases as sales increase, use of the AFN formula is likely to understate the amount of additional funds required, other things held constant.

Question

Quizplus · Accepted Answer

The Answer of If a firm's capital intensity ratio (A0*/S0) decreases as sales increase, use of the AFN formula is likely to understate the amount of additional funds required, other things held constant.

If a Firm's Capital Intensity Ratio (A0*/S0) Decreases as Sales