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Which of the following statements is CORRECT? a. The capital intensity ratio gives us an idea of the physical condition of the firm's fixed assets.

Which of the following statements is CORRECT?

a.

The capital intensity ratio gives us an idea of the physical condition of the firm's fixed assets.

b.

Dividend policy does affect the requirement for external funds based on the AFN equation.

c.

Since A/P and accrued liabilities must eventually be paid off, as these accounts increases, AFN as calculated by the AFN equation must also increase.

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