INTERMEDIATE FINANCIAL MANAGEMENT
12th Edition
ISBN: 9781305718265
Author: Brigham
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Chapter 9, Problem 2P
Refer to Problem 9-1. What would be the additional funds needed if the company’s year-end 2015 assets had been $7 million? Assume that all other numbers, including sales, are the same as in Problem 9-1 and that the company is operating at full capacity. Why is this AFN different from the one you found in Problem 9-1? Is the company’s “capital intensity” ratio the same or different?
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