Question

The capital intensity ratio is generally defined as follows: a. Sales divided by total assets, i.e.,...

The capital intensity ratio is generally defined as follows:

a. Sales divided by total assets, i.e., the total assets turnover ratio.
b. The ratio of sales to current assets.
c. The amount of assets required per dollar of sales, or A0*/S0.
d. The ratio of current assets to sales.
e. The percentage of liabilities that increase spontaneously as a percentage of sales.
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Answer #1

Capital Intensity Ratio = Total Assets / Total revenue

Or

Capital Intensity Ratio = Capital Expenditure / Labour Cost

Thus option C is correct.

Pls comment, if any further assistance si required.

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