FIN 534 Final Part 1 (SUMMER 2016)
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26. Last year Baron Enterprises had $350 million of sales, and it had $270 million of fixed assets<br />
that were used at 65% of capacity last year. In millions, by how much could Baron's sales increase before<br />
it is required to increase its fixed assets?<br />
27. Which of the following statements is CORRECT?<br />
28. A company expects sales to increase during the coming year, and it is using the AFN equation<br />
to forecast the additional capital that it must raise. Which of the following conditions would cause the AFN<br />
to increase?<br />
29. The capital intensity ratio is generally defined as follows:<br />
30. The Besnier Company had $250 million of sales last year, and it had $75 million of fixed<br />
assets that were being operated at 80% of capacity. In millions, how large could sales have been if the<br />
company had operated at full capacity?
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