Total asset turnover: An increase in the fi rms total asset turnover increases the sales generated for

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Total asset turnover: An increase in the fi rm’s total asset turnover increases the sales generated for each dollar in assets. This decreases the fi rm’s need for new assets as sales grow and thereby increases the sustainable growth rate. Notice that increasing total asset turnover is the same thing as decreasing capital intensity. LO.1

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Corporate Finance

ISBN: 9780073105901

8th Edition

Authors: Jeffrey Jaffe, Bradford D Jordan

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