A. The capital intensity ratio is the amount of assets required per dollar of sales. The capital intensity ratio of a firm affects its capital requirements. A company with a high assets-to-sales ratio will require more assets for a given increase in sales and therefore will have a greater need for external financing than a company with a lower assets-to-sales ratio.

B. The capital intensity ratio is the amount of assets required per dollar of sales. It is assets that increase when sales increase divided by sales. The capital intensity ratio of a firm affects its capital requirements. A company with a high assets-to-sales ratio will require more assets for a given increase in sales and therefore will have a greater need for external financing than a company with a lower assets-to-sales ratio.

C. The capital intensity ratio is the amount of assets required per dollar of sales. The capital intensity ratio of a firm affects its capital requirements. A company with a high assets-to-sales ratio will require more assets for a given increase in sales and therefore will have a greater need for external financing than a company with a lower assets-to-sales ratio.

D. The capital intensity ratio is the amount of assets required per dollar of sales. The capital intensity ratio of a firm affects its capital requirements. A company with a high assets-to-sales ratio will require more assets for a given increase in sales and therefore will have a greater need for external financing than a company with a lower assets-to-sales ratio.