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Two firms with the same capital intensity ratios (spontaneous assets/sales) were generating the same sales. However, one firm was operating below capacity. If the two

Two firms with the same capital intensity ratios (spontaneous assets/sales) were generating the same sales. However, one firm was operating below capacity. If the two firms expect the same growth in sales in the next period, it is more likely that the firm operating at full capacity will need additional funds, other things held constant. True or False, and why?

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