ABC Inc Has Total Assets of $550,000 and a Debt Ratio

question 9

Multiple Choice

ABC Inc. has total assets of $550,000 and a debt ratio of 60 percent. If last year's sales were $950,000 and sales are expected to grow 10 percent in the future, what is ABC Inc. capital intensity ratio?

• A) 1.72
• B) 0.52
• C) 1.90
• D) 0.58

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Definitions:

Residual Volume

The amount of air remaining in the lungs after a forceful exhalation.

Total Lung Capacity

The maximum amount of air the lungs can hold, encompassing tidal volume, residual volume, and other respiratory volumes.

Tidal Volume

The amount of air that is inhaled or exhaled during normal breaths at rest.

Lung Cancer

A type of cancer characterized by the uncontrolled growth of abnormal cells in the lungs, often caused by smoking.