Company H is a medical supplies company. So board of directors has decided to appoint person L is a CEO and asked him to develop the financial planning and strategic plans and forecasts. She always compares financial ratios of Company H with industry averages. If any ratio is substandard she discussed immediately with the responsible manager and needs to improve the situations. To determine: The self-supporting growth rate, whether it will affect change in capital intensity ratio or other factors mentioned in the previous question and the capital intensity ratio subject to lumpy assets or economies of scale.

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Chapter 9, Problem 4MC

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Company H is a medical supplies company. So board of directors has decided to appoint person L is a CEO and asked him to develop the financial planning and strategic plans and forecasts.

She always compares financial ratios of Company H with industry averages. If any ratio is substandard she discussed immediately with the responsible manager and needs to improve the situations.

To determine: The self-supporting growth rate, whether it will affect change in capital intensity ratio or other factors mentioned in the previous question and the capital intensity ratio subject to lumpy assets or economies of scale.

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